Grasshopper Bank in New York has agreed to buy Auto Club Trust in Dearborn, Mich.
The $835 million-asset Grasshopper said in a press release that it will raise about $35 million in conjunction with the acquisition. The deal is expected to close in the first half of next year. The price wasn’t disclosed.
The $485 million-asset Auto Club Trust is a federal savings bank owned by The Auto Club Group.
“This transaction brings together Grasshopper Bank’s premier digital platform with Auto Club Trust, a bank known for providing AAA members … with a great experience across a myriad of offerings,” Michael Butler, Grasshopper’s chairman and CEO, said in the release.
“We look forward to adding Grasshopper Bank’s award-winning digital banking experience to Auto Club Trust’s existing marketing strategy while expanding the consumer and business products provided to this community over time,” he added.
The deal should be 48.5% accretive to Grasshopper’s tangible book value.
Squire Patton Boggs and MJC Partners advised Grasshopper. Nelson Mullins Riley & Scarborough and Keefe, Bruyette & Woods advised The Auto Club Group.