Camden National to Acquire Northway Financial in $86.6M Merger

By Bobby Samwell • Tuesday, September 10 15:23 • Permanent Link

Camden National Corporation ("Camden National") and Northway Financial, Inc. ("Northway") have announced their agreement to merge in an all-stock transaction valued at approximately $86.6 million. This deal will position Camden National as a premier northern New England bank, with the combined company having 74 branches serving attractive markets in New Hampshire and Maine.

As of June 30, 2024, Northway had approximately $1.3 billion in total assets, $0.9 billion in total loans, and $1.0 billion in deposits. On a combined basis, the merger is expected to be approximately 19.9% accretive to Camden National's 2025 earnings per share and 32.7% accretive to its 2026 earnings per share.

The transaction values each outstanding share of Northway common stock at $31.46, and Northway shareholders will receive 0.83 shares of Camden National common stock for each outstanding share of Northway common stock.

Upon completion of the transaction, Camden National shareholders will own approximately 86% of the combined company, and Northway’s shareholders will own approximately 14% of the combined company, which will continue to trade on NASDAQ under the "CAC" stock ticker symbol.

The merger is expected to be completed during the first quarter of 2025, subject to certain customary conditions, including the receipt of required regulatory approvals and approval by Northway shareholders.

Raymond James & Associates, Inc. is serving as the exclusive financial advisor and rendered a fairness opinion to the board of directors of Camden National, while Sullivan & Cromwell LLP is serving as legal counsel to Camden National in the transaction. Performance Trust Capital Partners LLC is serving as the exclusive financial advisor to Northway and rendered a fairness opinion to the board of directors of Northway, with Goodwin Procter LLP serving as legal counsel to Northway in the transaction.

Camden National Corporation will host a conference call to discuss the transaction at 1:00 p.m. Eastern Time today. The live webcast will be available on Camden National Corporation’s website at camdennationalcorporation.com, and the conference call’s transcript and replay will also be available on the website following the conference call. Today the company's shares have moved -1.0% to a price of $37.53. For the full picture, make sure to review Camden National's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.