FX.co ★ Mid Penn To Buy William Penn For Around $127 Mln; WMPN Up Over 17% In Pre-Market

Mid Penn Bancorp, Inc. (MPB) and William Penn Bancorporation (WMPN) have announced their agreement to merge, a transaction valued at approximately $127 million, structured entirely in shares. This strategic merger is anticipated to immediately enhance Mid Penn's earnings per share and positively influence its long-term profitability metrics.

According to the agreement details, William Penn shareholders will exchange each of their shares for 0.4260 shares of Mid Penn. All existing William Penn options will be converted into Mid Penn equivalent options. Using Mid Penn's closing price of $31.88 per share on October 30, the transaction values each William Penn share at roughly $13.58, culminating in a total transaction value of $127 million.

The merger, slated for completion in the first half of 2025, aims to create a new community banking entity boasting assets of approximately $6.3 billion, loans totaling $4.9 billion, and deposits amounting to $5.3 billion. Rory Ritrievi, CEO of Mid Penn, stated that this merger will reinforce Mid Penn's market presence in the greater Philadelphia metro area, aligning with its strategic objective of focused expansion in southeastern Pennsylvania and southern New Jersey.

William Penn, headquartered in Bristol, operates 12 branches across Pennsylvania and New Jersey. Following the merger announcement, WMPN shares rose by 17.58% to $14.98 in pre-market trading on the Nasdaq.