Main Street Financial Services in Wheeling, W.Va., has agreed to buy Wayne Savings Bancshares in Wooster, Ohio.
The $604.3 million-asset Main Street said in a press release that it will pay $68 million in stock for the $729.8 million-asset Wayne Savings. The deal is expected to close in the second half of this year.
Wayne Savings’ shareholders are expected to own about 52.5% of the combined company, which will retain the Main Street name. The headquarters will be in Wooster.
The transaction is expected to be about 40% accretive to Main Street’s earnings per share on a fully phased-in basis, excluding merger charges. Main Street expects to increase its quarterly dividend to about 13 cents a share after closing.
“This combination is a true merger-of-equals, bringing together two high-performing community banks which better positions us to serve our collective customers,” Richard Lucas, Main Street’s president and CEO, said in the release.
“The transaction provides outstanding financial benefits and enables us to enhance value for our customers, our communities, our employees and our shareholders,” Lucas added.
Wayne Savings will have seven of the company’s 13 board seats. Mark Witmer, Wayne Savings’ executive chairman, will have the same role at Main Street, while Nicholas Sparachane, Main Street’s chairman, will become vice chairman.
James VanSickle II, Wayne Savings’ president and CEO, will become president and CEO of the combined company. Lucas will become bank president.
Piper Sandler and Dinsmore & Shohl advised Wayne Savings. Raymond James and Jackson Kelly advised Main Street.