People's United To Buy Suffolk In $402 Million Stock Deal
People's United Financial Inc. announced a deal Monday to buy Suffolk Bancorp in a deal valued at $402 million. Under terms of the deal, Suffolk shareholders will receive 2.225 People's United shares for each Suffolk shares they own. Based on Friday's closing prices, that valued Suffolk shares at $33.55 each, or a 43% premium. People's United expects the deal to close late in the fourth quarter of 2016, and add earnings excluding one-time costs. The shares of both companies weren't active in premaket trade. Through Friday, People's United's stock had lost 6.6% year to date, while Suffolk's had tumbled 17% and the S&P 500 had lost 0.3%.
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