Brand Group, the parent holding company of Brand Bank, has entered into agreements that contemplate the investment of up to USD200m in capital.
As part of the first phase of investment, agreements have been signed with affiliates of The Carlyle Group, The Stephens Group, the Cousins family’s Nonami and various individual Atlanta investors.
The proceeds will be used to strengthen Brand Bank’s balance sheet and provide capital for general corporate purposes.
As part of the transaction, John E. McKinley, III, will become a Brand Group investor and executive chairman of Brand Group and Brand Bank. McKinley was principal operating officer for BankSouth in the 1990s prior to its sale to Bank of America. Patrick Flinn, former chief executive of BankSouth, will become an independent board member of Brand Group pending regulatory approval.
Bartow Morgan Jr. will continue to serve as chief executive of both Brand Group and Brand Bank. Morgan and his management team began assembling this transaction more than a year ago.
“Through this agreement, Brand Group is taking an important step to strengthen its capital base and position Brand Bank to continue its 105-year tradition as one of the leading community banks in the metro-Atlanta market. We are excited that we have attracted such a quality team of investors and management partners to help us grow,” Morgan says.
The investment agreements contemplate investments in private transactions of up to USD200m in additional capital in Brand Group. Initially, investors will purchase approximately USD125m in a transaction expected to close in the first quarter of 2011. Further investments of up to USD75m may be made in the next two years.
