Mergers and Acquisitions
Transaction Details
DD&F CONSULTING GROUP 
Deal Overview
Buyer:  Simmons First National Corporation (Click for buyer financial information)
Target:  American Bancshares of Arkansas, Inc. (Click for target financial information)
Deal Type:  Bank & Thrift Company
Announcement Date 7/24/98   Announced Deal Value ($M) 22.4
Status Completed   Announced Deal Value Per Share ($) 2,828.84
Completion Date 12/9/98      
 
Deal Summary
Simmons First National announced its first deal of 1998 with an agreement to acquire American Bancshares of Arkansas for $21.9 million in stock. American State Bank, a unit of American Bancshares, operates five branches in Franklin and Sebastian Counties, AR. The deal will strengthen Simmons First's position in Sebastian County, where the company currently ranks No. 7. On a pro forma basis, Simmons First will hold 6.09% deposit market share in this county. Simmons will enter Franklin County with 25.87% market share.

Deal Pricing Ratios
  Announcement Completion
Price / Book (%) 239.91 189.59
Price / Tangible Book (%) 242.32 191.27
Price / LTM EPS (x) 21.31 18.30
Price / Deposits (%) 31.34 25.34
Price / Assets (%) 25.71 20.66
Tang Book Premium / Core Deposits (%) 19.85 13.06


Deal Terms

Description of Consideration
Simmons First exchanged 58.74324 shares for each American share held. Seller's financials are for American State Bank.
Accounting Method Pooling   Lockup Agreement No
In-State Transaction? Yes   Strike Price ($) NA
Merger of Equals? No   % of Shares Outstanding NA
Geographic Expansion? Partial Overlap   Shares Under Option NA
Goodwill Generated ($000) 0   Core Deposit Intangibles ($000) 0
Estimated Cost Savings (%) NA   Est. Restructuring Charges ($000) 650
Termination Fee ($000) 0  
Exchange Ratio
(Common For Common)
58.7432  
         
Consideration Breakout
Cash ($M)   0
Common Stock ($M)   18.1
Common Shares Issued   464,894
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 No NA
 
Seller Yes DD&F Consulting Group
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Williams & Anderson
 
Seller Yes McAfee & Taft

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