FleetBoston Financial Agrees to Acquire Summit Bancorp in $7 Billion Stock Transaction
Summit Customer Base to Benefit from Greater Breadth of Products and Services
Strategic Acquisition Solidifies Fleet Position in Metropolitan New York Area
BOSTON, Oct. 2 /PRNewswire/ -- FleetBoston Financial Corporation (NYSE: FBF - news) today
announced that it has signed a definitive merger agreement to acquire Summit Bancorp (NYSE:
SUB - news), the leading retail and commercial bank in New Jersey. The transaction, which is
valued at $7.0 billion, solidifies Fleet's presence in the New Jersey and metropolitan New York
markets, and is a logical extension of Fleet's geographic franchise across the Northeast.
Under the terms of the agreement, Summit shareholders will receive 1.02 shares of Fleet for each
share of Summit they own in a fixed stock exchange. Based on the closing price of Fleet's stock on
Friday, September 29, the transaction values Summit at $39.78 per share (or in the aggregate at
$7.0 billion). The price per share represents a 15.7% premium over Summit's stock price as of
September 29. The transaction, which is expected to be tax-free to Summit shareholders, will be
accounted for on a pooling basis and has been approved by the Boards of Directors of both
companies. The transaction is expected to close before March 31, 2001 and is subject to approval
by Summit shareholders as well as customary regulatory approvals.
Terrence Murray, Chairman and Chief Executive Officer of Fleet, said, ``Summit has a formidable
presence in the attractive New Jersey market. This transaction is an excellent geographic fit with
our existing franchises, making Fleet the number one bank in New Jersey and, for the first time,
extending our banking franchise into the Philadelphia region. In addition, it furthers Fleet's strategic
goals of balanced earnings and leveraging our product and services capabilities over an expanded
customer base, as we extend our range of sophisticated offerings to Summit's one million
households.''
Chad Gifford, President and Chief Operating Officer of Fleet, said, ``We will bring together the
best of the two companies, specifically the capabilities and expertise of Fleet and the relationship
management skills of Summit. Moreover, we will combine and maintain the outstanding community
investment and philanthropic levels of both companies in New Jersey, which total $4 million per
year.''
T. Joseph Semrod, Chief Executive Officer of Summit, said, ``This acquisition is the right one for
Summit, as it provides significant value to our shareholders, our customers, our employees, and the
members of our communities. Together, our combined organization will be able to offer our
customers a broader and more sophisticated array of products and services, while continuing to
provide the highest levels of customer service. Importantly, Fleet has committed to maintaining our
current high levels of community, charitable and economic development commitments, deserving of
our outstanding CRA rating.'' Semrod has agreed to continue to serve as Chairman of the New
Jersey bank and will be named a Vice Chairman and a member of the board of directors of
FleetBoston Financial Corporation. John G. Collins, a current Vice Chairman of Summit, will
serve as President of the New Jersey bank.
Summit has $39 billion in assets, and more than 500 branches across New Jersey, Pennsylvania
and Connecticut. Fleet, with assets of $181 billion, has approximately 1,200 branches in New
England, New York and New Jersey. At completion of the transaction, expected in the first quarter
of 2001, the combined institution will have approximately $220 billion in assets.
The transaction is expected to be immediately accretive to Fleet's earnings.
Also today, Fleet announced that its Board of Directors has rescinded its prior authority, granted in
April 2000, to repurchase up to $2.0 billion of its common stock to comply with the limitations of
pooling-of-interests accounting in its acquisition of Summit.
FleetBoston Financial is the eighth largest financial holding company in the United States. An $181
billion diversified financial services company, it offers a comprehensive array of innovative
financial solutions to 20 million customers in more than 20 countries and territories. Among the
company's key lines of business are: retail banking, with approximately 1,200 branches and over
3,400 ATMs in the Northeast; commercial banking, including capital markets/investment banking
and commercial finance; investment services, including discount brokerage, and full service
banking through more than 250 offices in Latin America. Fleet Boston Financial is headquartered in
Boston and listed on the New York Stock Exchange (NYSE: FBF - news) and the Boston Stock
Exchange (BSF: FBF).
Summit Bancorp (NYSE: SUB - news) is a $39 billion diversified financial services company
headquartered in Princeton, New Jersey. Through Summit's 500 branches, 600 ATMs and
electronic commerce offerings such as Summit Online Banking, it provides comprehensive
financial services to an extensive retail, corporate banking and private bank customer base in New
Jersey, Eastern Pennsylvania, and Connecticut. For additional information about the company,
please visit its web site at summitbank.com.
A conference call for the investing public will be broadcast live over the Internet at 10:00 a.m.
EDT on Monday, October 2, 2000. The call is available at fleet.com (listen only).
SOURCE: FleetBoston Financial Corporation
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