Brookfield-based Merchants & Manufacturers Bancorp. will acquire Reedsburg Bancorporation Inc. and Random Lake Bancorp Limited.
Reedsburg Bancorporation serves as a one-bank holding company for The Reedsburg Bank, which has total assets of $137 million with four locations in central Wisconsin.
The purchase price is $36 million and will be payable in a combination of approximately 85% cash and notes and 15% Merchants’ common stock. The transaction is expected to close in the third quarter of 2003.
Random Lake Bancorp serves as a one-bank holding company for Wisconsin State Bank, which has total assets of $93.9 million with four locations in Wisconsin. The bank’s main office is in Random Lake, 35 miles northwest of Milwaukee. The bank also has a branch location just a few miles east of Random Lake in Belgium. In addition, Wisconsin State Bank has a significant presence along the Mississippi River, with two locations in Prairie Du Chien.
For each share they own, shareholders of Random Lake Bancorp will receive 90 shares of Merchants common stock and $300 in cash. Based on Merchants recent closing price of $30.40, the approximate purchase price would be $13 million. The transaction is expected to close in the third quarter of 2003.
Merchants & Manufacturers operates five banks in Wisconsin: Lincoln State Bank, Grafton State Bank, Franklin State Bank, Community Bank of Oconto County and Fortress Bank of Westby, and one each bank in Minnesota and Iowa.
It offers residential mortgage services through CBG Mortgage Inc. and investment and insurance products through Link Community Financial Services.
May 2, 2003 Small Business Times, Milwaukee