CIBC to acquire PrivateBancorp in $3.8 billion transaction

Leadership will remain in place at The Private Bank

Canadian bank CIBC announced today it plans to acquire PrivateBancorp Inc. in a transaction valued at $3.8 billion.

Chicago-based PrivateBancorp operates The PrivateBank, which has an office in downtown Milwaukee that the bank says will not be impacted by the transaction. A middle market commercial bank that also offers private banking and wealth management, PrivateBancorp has about $18 billion in assets. It has about 1,200 employees at 34 offices in 12 states.

CIBC has a global presence, with 11 million personal and business clients. It offers retail and business banking, wealth management and capital markets.

PrivateBancorp will continue to be based in Chicago and its executive team and community commitments will remain in place.

The acquisition will expand CIBC’s North American footprint and allow PrivateBancorp to continue growing under its current leadership, the companies said in a release.

“Acquiring PrivateBancorp accelerates our strategy of building a strong, innovative and client-focused bank by creating opportunities to bank across borders for our Canadian clients and offering more services to our private wealth clients at Atlantic Trust,” said Victor Dodig, president and chief executive officer of CIBC.

“Our team has built a premier commercial and private banking business. We believe this transaction allows us to not only continue our success but to achieve even more as our clients benefit from CIBC’s financial strength, and our employees become part of a respected North American organization that shares our values and is strategically positioned for long-term growth. We look forward to extending U.S. banking services to CIBC’s Canadian clients and Atlantic Trust’s private wealth clients, in addition to exploring mutual growth opportunities going forward,” said Larry Richman, president and CEO of PrivateBancorp.

The transaction, which is 60 percent stock and 40 percent cash, is expected to close in the first quarter of 2017, pending regulators’ and PrivateBancorp shareholders’ approval. CIBC expects the acquisition will be accretive to its adjusted earnings per share in the third year of operation.

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Molly Dill, former BizTimes Milwaukee managing editor.

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