On Tuesday, Southern California Bancorp (BCAL) and California BanCorp (CALB) made an announcement about their definitive merger agreement. The transaction, which is an all-stock transaction, is worth approximately $233.6 million. This means each share of California BanCorp will be worth $26.54, based on Southern California Bancorp's closing price as per the records of January 29, 2024.
Every outstanding share of California BanCorp common stock will be replaced by 1.590 shares of Southern California Bancorp, according to the agreement. Once the merger is complete, the shareholders of Southern California Bancorp will own nearly 57.1% of all outstanding shares from the combined company, while California BanCorp shareholders will own about 42.9%.
The merger is expected to establish a financial institution in California with approximately $4.6 billion in assets. Leaders from both companies will take on key roles within the new organization. David Rainer, the current Chairman of Southern California Bancorp, will take on the role of Executive Chairman for the combined company, its bank, and boards. Steven Shelton, presently serving as the Chief Executive Officer of California BanCorp, will assume the position of Chief Executive Officer and director for the newly amalgamated company and bank.
The merger is expected to be officially concluded in the third quarter of 2024.
