CB Financial Services in Washington, Pa., has agreed to sell its insurance business to World Insurance Associates.
The $1.4 billion-asset CB said in a press release that it will sell Exchange Underwriters for $30.5 million in cash, plus added revenue-based earn-out payments. The deal is expected to close in the fourth quarter.
The net gain on sale is expected to be $16.4 million
“After extensive diligence, we believe World is the right partner, providing optimal benefit for all stakeholders, and assuring our associates and clients are well taken care of,” John Montgomery, CB’s president and CEO, said in the release.
“This transaction realizes a significant valuation premium and is immediately accretive to capital, tangible book value and liquidity,” Montgomery added. “The additional capital provides flexibility to evaluate and pursue various strategic initiatives … in support of our core banking business.”
Dowling Hales and Luse Gorman advised CB.