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California Investment Group Acquires Bank in Rockies

March 05, 2004|From Bloomberg News

Centennial Bank Holdings Inc., which has 12 bank branches in the U.S. West, said Thursday that it has agreed to be acquired by a group led by San Diego County investor John Eggemeyer for $155 million in cash.

The acquisition will be funded by the private placement of $185 million of equity raised through Castle Creek Financial, according to a statement released by closely held Centennial, which is based in Fort Collins, Colo.

Eggemeyer, 58, is co-founder and chief executive of Rancho Santa Fe-based Castle Creek.

The $30-million difference between the purchase price and share placement will be used for capital contributions to Centennial's only banking subsidiary, Centennial Bank of the West, and to support expansion. The company, which had $708.7 million in assets on Dec. 31, has bank branches along the Interstate 25 and U.S. 85 corridors north of Denver.

Once the acquisition is completed, Eggemeyer will become chairman and CEO of Centennial Bank Holdings Inc.

The company's founder and current CEO, Bill Farr, would be CEO of Centennial Bank of the West.

The acquisition probably will close in June or the third quarter, said Paul Taylor, chief financial officer of Centennial Bank Holdings.

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