Horizon Bancorp To Buy Wolverine Bancorp At a 31% Premium

Horizon Bancorp announced Wednesday a deal to buy Midland, Mich.-based Wolverine Bancorp Inc. in a deal that values the regional bank at $88.9 million. Under terms of the deal, Horizon will pay Wolverine shareholders 1.0152 of Horizon common stock and $14 in cash for each Wolverine share they own. Based on Tuesday's closing prices, the deal values Wolverine shares at $41.92, a 31% premium. The deal is expected to close late in the third quarter or early in the fourth quarter. "This partnership with Horizon Bank will provide us new opportunities to increase the depth of products and services we can offer to our customers, while providing significant value to our shareholders," said Wolverine Chief Executive David Dunn. Wolverine's stock, which is halted for news until 8:00 a.m. ET, has tacked on 1.1% year to date, while Horizon shares have lost 1.8%, the SPDR S&P Regional Banking ETF has inched up 0.3% and the S&P 500 has climbed 9.0%.