Ohio Farmers Insurance Co., parent of Westfield Insurance, has agreed to sell Westfield Bancorp to First Financial Bancorp in a cash and stock deal valued at $325mn.
The transaction allows Westfield to concentrate on its property and casualty insurance operations, which it identifies as the segment with the highest potential for profitable expansion.
Westfield Chief Executive Officer and Board Chair Ed Largent stated the sale aligns with the company’s strategy of strengthening its P&C insurance portfolio, including the recent formation of Westfield Specialty U.S. and Westfield Specialty International.
This decision is aligned with our strategic focus on our portfolio of property and casualty insurance businesses, including the recent additions of Westfield Specialty U.S. and Westfield Specialty International to the portfolio
Ed Largent, Westfield Chief Executive Officer and Board Chair
First Financial Bancorp will acquire 100% of Westfield Bancorp’s stock from Ohio Farmers. The deal consists of $260mn in cash and approximately 2.75mn shares of First Financial stock, valued at $65mn based on the 10-day volume-weighted average as of June 20.
Westfield Bancorp holds $2.2bn in assets. First Financial noted the acquisition enhances its commercial banking and wealth management footprint in Northeast Ohio by adding Westfield Bank’s retail branches, commercial banking, private banking, and insurance agency services.
The transaction is expected to close in the fourth quarter, pending regulatory approvals and other standard conditions.
First Financial anticipates 12% earnings accretion from the acquisition and estimates a tangible book value earn-back period of roughly 2.9 years.
As the sole shareholder of Westfield Bancorp, Ohio Farmers has approved the deal. First Financial shareholder approval is not required.
Westfield stated the divestment supports its efforts to streamline operations, strengthen its balance sheet, and focus on long-term insurance growth in line with wider industry trends.
