Kansas bank in $672m buyout

The Cypress Group and CSFB Private Equity join a banking veteran in agreeing to buy Gold Banc, a community bank, off the public market.

Two New York private equity firms, The Cypress Group and CSFB Private Equity, have agreed to buy Leawood, Kansas community bank Gold Banc in a $672 million (€532 million) public-to-private transaction.

 

The acquisition is being done through a platform company called Silver Acquisition, which will pay $16.60 per share for the company, a 16 percent premium over Gold Banc’s closing price yesterday.

 

The privatised bank will be led by C. Stanley Bailey, the former chairman and chief executive officer of Superior Financial, an Arkansas bank that was purchased in December by Arvest Holding for $211 million. In 1998, Bailey led a group of investors in the buyout of Superior Financial from Bank of America. Arvest is controlled by Wal-Mart’s Walton family.

 

Prior to that, Bailey served as CFO of Hancock Holding and of AmSouth Bancorporation.

 

Gold Banc has $4 billion in assets. It operates 40 community banks largely in Kansas City, throughout Oklahoma and in Florida. The bank also provides wealth management services.

 

Cypress Group last year bought pet-food company Meow Mix from buyout firm JW Childs for $430 million.

 

CSFB Private Equity’s participation in the deal was done through its $5.3 billion fund, DLJ Merchant Banking Partners, which closed in 2001.

 

The transaction is expected to be completed by the third quarter.