NEW YORK CITY & PASADENA, CA—CIT Group has completed its previously announced acquisition of IMB Holdco, the parent company of OneWest Bank NA (OneWest Bank) for approximately $3.4 billion in cash and stock. The transaction, first announced last month, has received all required regulatory approvals.
“The completion of this transaction advances our strategic efforts to build a leading commercial banking franchise,” says John Thain, chairman and CEO of CIT, a provider of commercial lending and leasing services. “Through the combination of our national lending and leasing platform with OneWest's wholesale lending and branch banking franchise, we've created a differentiated provider of banking services for small and middle market businesses. I look forward to working with our newest colleagues as we integrate our two organizations, serve the needs of our customers and communities and realize the benefits of this transaction for our shareholders.”
The combined company, CIT Group, has more than $65 billion in assets and more than $30 billion of deposits. The company will continue to be led by Thain. Steven Mnuchin, former chairman of IMB Holdco, joined CIT Group as vice chairman and a member of its board of directors. In addition, Al Frank, a former independent director of OneWest Bank, joined the CIT Board, which increased its size from 13 to 15 members.
Under the terms of the transaction, IMB Holdco LLC shareholders received approximately $1.9 billion in cash and approximately 30.9 million shares of CIT, as well as approximately 168,000 restricted stock units of CIT.
JP Morgan Securities served as financial advisor to CIT and Wachtell, Lipton, Rosen & Katz served as the firm's legal counsel. Goldman, Sachs & Co., Bank of America Merrill Lynch and Cleary, Gottlieb, Steen & Hamilton represented IMB Holdco. Sullivan & Cromwell served as joint regulatory counsel for CIT and IMB Holdco.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
