Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Educational Services of America, Inc. (Click for buyer financial information)
Target:  SouthEast Bancshares, Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 6/18/12   Announced Deal Value ($M) 22.6
Status Completed   Announced Deal Value Per Share ($) 16.00
Completion Date 12/14/12      
 
Deal Summary
Knoxville, Tenn.-based Educational Services of America Inc. unit EdBancorp Inc. acquired Athens, Tenn.-based Southeast Bancshares Inc. Ratios on completion are based on Southeast Bancshares Inc.'s June 30, 2012 small parent equity and LTM net income of $20,471,000 and $1,967,000, respectively. Educational Services of America Inc. will expand in Tennessee, by seven branches to be ranked No. 51 with a 0.31% share of approximately $116.69 billion in total market deposits.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 121.31 110.36
Price / Tangible Book (%) 124.46 112.67
Price / LTM EPS (x) 16.54 11.49
Price / Deposits (%) 9.62 10.00
Price / Assets (%) 8.43 8.78
Tang Book Premium / Core Deposits (%) 2.40 1.40


Deal Terms

Description of Consideration
Educational Services of America Inc. paid $16 in cash for each outstanding share of Southeast Bancshares Inc. Targets financials are for SouthEast Bank & Trust.
Accounting Method NA   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) NA
Merger of Equals? No   % of Shares Outstanding NA
Geographic Expansion? Market Expansion   Shares Under Option NA
Goodwill Generated ($000) NA   Core Deposit Intangibles ($000) NA
Estimated Cost Savings (%) NA   Est. Restructuring Charges ($000) NA
Termination Fee ($000) NA  
         
Consideration Breakout
Cash ($M)   22.6
Common Stock ($M)   0
Common Shares Issued   0
Preferred Stock ($M)   0
Preferred Shares Issued   0
Debt ($M)   0
Other ($M)   0

Deal Advisers

Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes DD&F Consulting Group
 
Seller Yes Milestone Advisors LLC
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Ritchie Law Firm P C
 
Seller Yes Butler Snow LLP

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