Toronto-Dominion Bank Group (TD.TO) will buy First Horizon Corp (FHN.N) for $13.4 billion in cash to expand its footprint in the southeastern United States, the banks said on Monday, in a record acquisition for the Canadian lender.
Based in Memphis – First Horizon has three locations in Jackson – 325 Oil Well Road, 2076 North Highland Avenue and an ATM at 180 East Chester Street.
According to Reuters, the deal is the culmination of a concerted hunt for U.S. acquisitions by TD, the second-largest bank by market value in Canada, and follows unsuccessful bids for other U.S. assets that have come up for sale in recent months.
TD will pay $25 for each First Horizon share, a 37% premium to the target’s last close. Shares of Memphis-based First Horizon were up nearly 32% in premarket trading.
The deal will help TD’s U.S. franchise emerge among the top six U.S. banks, with about $614 billion in assets and a network of 1,560 branches, serving over 10.7 million U.S. customers across 22 states, the bank said.
TD is currently the No. 8 bank in the United States by assets, with most of its operations located in the northeast and Florida. The deal will be funded entirely with TD’s excess capital.
The deal is TD’s biggest ever.
