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Harleysville Closes on $85M East Penn Buy

HARLEYSVILLE, PA-Nine East Penn Bank branches retain their name and take Harleysville National's total to 55 across eight Pennsylvania counties.

By Marita Thomas | Updated on November 20, 2007

HARLEYSVILLE, PA-Harleysville National Corp. has completed its acquisition of Emmaus-based East Penn Financial Corp. The value of the transaction is approximately $85 million or $13.41 per share of East Penn stock. It includes the transfer of slightly more than 2.4 million shares of HNC common stock and approximately $50.7 million in cash.

That final value is lower than anticipated when the initial agreement was struck in May. At that time, as GlobeSt.com reported, the transaction was valued at $92.7 million, based on payment of approximately $14.50 per East Penn share and was projected to not fall below $86.3 million. Shares of both companies’ common stock on the Nasdaq experienced significant volatility in the past months, and both companies reported declines in net income for this year’s third quarter. Shares of EPEN stopped trading at the close of the deal on Nov. 19.

The acquisition adds nine bank branches to Harleysville National’s existing 46 and also increases its presence in the Lehigh Valley. Under the agreement, East Penn Bank’s nine branches will retain the East Penn logo and identity, and nine existing Harleysville branches in Lehigh, Northampton, Monroe and Carbon counties will take on the East Penn identity and become part of Harleysville National’s newly created East Penn Bank division.

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