Capital One is acquiring Hibernia in a stock and cash transaction valued at approximately $5.3 billion.
Among U.S. financial institutions, the combined company will be one of the top 10 largest consumer lenders and one of the top 20 in terms of total deposits.
The transaction will combine Capital One, a bank holding company that is one of the nation’s leading diversified consumer financial services companies, with Hibernia, a financial holding company with operations in Louisiana and Texas that provides a wide array of financial products and services through its bank and non-bank subsidiaries, including a full range of deposit products, small business, commercial, mortgage and private and international banking, trust and investment management, brokerage, investment banking and insurance. Hibernia is the largest depository institution in Louisiana and has 207 current locations throughout Louisiana and 109 locations in Texas, including the high-growth areas of Houston and Dallas-Fort Worth.
Upon closing of the transaction, Hibernia National Bank will become a subsidiary of Capital One, with Hibernia President and Chief Executive Officer J. Herbert Boydstun as its President, reporting to Capital One’s Chairman and Chief Executive Officer, Richard D. Fairbank. Hibernia’s Chairman, E.R. Campbell, will join Capital One’s Board of Directors.
Fairbank said, “This acquisition is a natural extension of the diversification strategy that we have been pursuing for some time. The transaction brings together two financial companies with complementary strengths and represents a compelling long-term value proposition for shareholders of both companies. Hibernia’s leading market share in Louisiana and its promising Texas branch expansion creates not only a solid growth platform as we continue to expand, but also an additional source of lower cost funding. Additionally, we believe our national brand, 48 million accounts, broad product offerings, asset generation capabilities, and marketing expertise will drive profitable growth in branch banking,” said Fairbank.
“I am especially pleased to welcome Herb Boydstun, his experienced management team and Hibernia’s employees to Capital One. Equally, we have been very impressed by Hibernia’s strong relationships in its communities and it is our intention to continue supporting the commitment Hibernia has demonstrated through its community activities,” said Fairbank.
Boydstun of Hibernia Corporation said, “We strongly believe that joining with Capital One is the right strategy for Hibernia’s shareholders, customers and communities. Together, we will create more opportunities for long-term growth than either company could on its own. With Capital One, we will gain access to higher-growth consumer financial services businesses where Capital One’s 48 million accounts and national brand make it an established leader. And due to the complementary nature of our businesses, we expect that there will be minimal disruption for our customers, employees and local communities. In fact, we expect that Hibernia’s ability to serve consumers and businesses in both Louisiana and Texas markets will be strengthened.”
Murdok | Breaking eBusiness News
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