First Busey Corp. expands Chicago presence with bank buy

Champaign, Ill.-based First Busey Corp. is growing in suburban Chicago by acquiring Merchants & Manufacturers Bank for $41.6 million.

By acquiring M&M Bank, First Busey will grow to more than $12.7 billion with more than 60 branches in Illinois, Missouri, Indiana and Florida. M&M Bank is the subsidiary of Merchants and Manufacturers Bank Corp., which has more than 50 employees and five branches in the Chicago metropolitan area. The bank serves private manufacturers, distributors and service businesses in Greater Chicago.  

The deal is expected to close in the second quarter of next year. M&M Bank stockholders will receive either $117.74 in cash, 5.7294 shares of Busey common stock, or mixed consideration of $34.55 in cash and 4.0481 shares of Busey common stock.

“We believe Busey is the right strategic partner to continue M&M Bank’s customer- and community-focus,” said M&M Bank CEO and Director Brad Butler. “We are pleased our customers will continue to experience tremendous, personalized service following the merger with Busey, while benefiting from an expanded array of sophisticated commercial, consumer and wealth management services and capabilities.”

Chicago-based Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to Busey. ArentFox Schiff LLP, Washington, D.C., served as legal counsel and New York City-based Keefe, Bruyette & Woods, Inc., served as financial adviser to M&M Bank.