Mechanics Bank acquired Rabobank, N.A.’s retail, business banking, commercial real estate, mortgage, and wealth management businesses
Image: Mechanics Bank completes acquisition of Rabobank, N.A. Photo: courtesy of Rabobank.
Mechanics Bank today announced the completion of its acquisition of Rabobank, N.A., a subsidiary of Rabobank Group. Mechanics Bank acquired Rabobank, N.A.’s retail, business banking, commercial real estate, mortgage, and wealth management businesses. Total consideration for the transaction, which was announced March 15, 2019, was approximately $2.1 billion.
The new entity operates under the highly respected Mechanics Bank name, with over $17 billion in total assets, a best-in-class deposit franchise and 144 branches. Headquartered in Walnut Creek, California, Mechanics Bank was founded in 1905 to assist the area’s local businesses and families and has remained focused on building lasting customer relationships throughout its storied history. Today, Mechanics Bank is the 5th largest California-based bank and continues to earn its reputation as a successful and trusted financial partner committed to helping consumers, businesses and communities grow and prosper.
“We believe this strategic combination of two highly complementary franchises will unlock significant value for our shareholders, clients, employees and the many communities served by the new Mechanics Bank,” said Carl B. Webb, Chairman of the Board of Mechanics Bank. “We are pleased to have closed such a major transaction less than six months since announcing our acquisition plans, and we now look forward to putting the tremendous resources of this unique financial institution to work for all of our constituents.”
Gerald J. Ford and Mr. Webb are Co-Managing Partners of Dallas-based Ford Financial Fund, which owns 81% of Mechanics Bank.
John DeCero, formerly President and CEO of Mechanics Bank, and Mark Borrecco, formerly CEO of Rabobank, N.A., serve as Co-CEOs of the new organization. They join Mr. Webb as members of the Office of the Chairman, which is charting the direction of Mechanics Bank. Mr. DeCero, a 29-year banking veteran, will oversee commercial banking, wealth management and indirect auto finance. Mr. Borrecco, with a 25-year career in financial services, will manage the retail banking and consumer lending activities of the bank.
“The past few months have been extremely productive as Mark and I worked closely together to develop a roadmap for the launch of the new Mechanics Bank,” said Mr. DeCero. “We will operate with the spirit of a true community bank backed by the resources of a strong regional bank. With our team’s extensive expertise and the bank’s broad offerings in retail and commercial banking, we anticipate significant near-term success at deepening relationships with our existing clients and attracting new business to stand-out among financial institutions in the markets we serve.”
“John and I are particularly excited about what this partnership means for our clients and communities,” said Mr. Borrecco. “At the new Mechanics Bank, we are mindful of the importance of our historic California roots and focused on the core values that remain foundational to our success. Our dedicated employees have a passion for banking and strong ties to those we serve. We are committed to delivering an exceptional experience to consumers and businesses, as we build a high performing bank with a reputation for excellence across our broad range of capabilities.”
Wachtell, Lipton, Rosen & Katz served as legal advisor to Mechanics Bank with Credit Suisse serving as financial advisor.
Source: Company Press Release