Beverly Hills-based PacWest Bancorp and downtown L.A.’s CU Bancorp will merge, with PacWest acquiring CU for $705 million in cash and stock.
CU Bancorp, which operates under the name California United Bank, was headquartered in Encino until December 2014 when it acquired 1st Enterprise Bank and moved to downtown Los Angeles. Following its acquisition by PacWest, the combined company will have $25 billion in assets and operate a total of 87 bank branches.
PacWest’s acquisition price works out to $39.45 a share, which represented a slight discount from the $39.50 CU stock closed at on Wednesday.
PacWest Bancorp Chief Executive Matt Wagner said in a statement that his outfit had been eyeing the CU operation and that the companies were a good strategic match.
“We have long admired the Southern California franchise the CU Bancorp team has built over the years,” Wagner said. “We are confident the partnership announced today will create value for both PacWest and CU Bancorp shareholders.”