(First Horizon) Shares of First Horizon Corporation rose more than 30% on Monday after announcing a $13.4 billion acquisition by TD Bank Group.
The acquisition price represents an offer of $25.00 for each of First Horizon’s common shares.
The transaction value is about 9.8 times multiple of First Horizon’s 2023E synergized earnings. It is also 2.1 times multiple of the company’s tangible book value at the close.
The transaction is expected to be accretive to TD’s adjusted EPS immediately, with over 10% accretive to 2023E on an adjusted EPS basis.
TD is also expected to benefit from an immediate entry in “highly attractive” US markets, with a significant opportunity for expansion across the southeast.
The deal is set to close in the first quarter of TDs 2023 fiscal year. Bryan Jordan, President, and CEO of First Horizon, will join TD as the company’s Vice-Chair.
FHN: NYSE is up +30.15%, TD: NYSE is down -1.53%.
