Wisconsin holding company acquires Aslin Group, Alterra Bank’s parent company
A recently announced cash-and-stock transaction valued at an estimated $30.1 million marks the acquisition of Aslin Group, including its Alterra Bank subsidiary, by First Business.
“Alterra’s competitive position, talented team, focus on commercial clients and complementary limited branch business model will expand the Wisconsin-based First Business’ growth into the attractive Kansas City metropolitan market, where First Business already operates its national equipment finance business,” First Business announced in a press release earlier this week.
Madison, Wis.-based First Business and Aslin Group, headquartered in Leawood, have approximately $1.5 billion in combined assets.
Kansas City offers a similar business mix as that of Madison but nearly tripled in size. According to a presentation given to First Business investors, businesses in the KC market totaled 76,013, compared to Madison’s 27,350.
“It is an exciting opportunity to find such a team in Kansas City, which mirrors our home Wisconsin market in many ways economically and demographically,” says Corey Chambas, president and CEO of First Business.
Asset-based lending, equipment finance, factoring, trust and investment services and retirement services offered by First Business, and SBA lending offered by Alterra, provide enhanced growth opportunities across the combined franchise.
Alterra had $223 million in assets, including $182 million in loans and $192 million in deposits as of March 31, according to the press release.
Under the terms of the agreement, each outstanding share of common stock of Aslin Group, Inc. will be converted into the right to receive $14,435.59, which will be payable in $6,496.02 in cash and $7,939.57 in First Business common stock.
The number of First Business common shares issued will be calculated based on First Business’s 10-day volume weighted average stock price as of the market close of the third business day prior to the effective date of the transaction.
It is anticipated that Alterra’s Overland Park and Leawood offices and Kansas state banking charter will be maintained. Alterra’s President and CEO Pam Berneking will remain in her position, and Alterra’s board, with the majority consisting of Kansas-based directors, is expected to remain “substantially intact.”
The boards of directors of First Business and Aslin Group unanimously approved the transaction, and closing is anticipated by late 2014, subject to approvals from regulators, Aslin Group stockholders and other customary conditions.