NEW YORK, NY / ACCESSWIRE / December 2, 2015 / HF Financial Corp. (NASDAQ: HFFC) a bank holding company, recently announced the signing of a definitive merger agreement pursuant to which Great Western Bancorp, Inc. will acquire HF Financial Corp., the holding company and parent of Home Federal Bank in a cash and stock transaction valued at $19.70 per share or $139.5 million in the aggregate, using the closing price of GWB stock as of November 27, 2015. Under the terms of the Agreement, 75% of HF Financial's common stock will be converted into Great Western common stock and the remaining 25% will be exchanged for cash. HF Financial stockholders will have the option to elect to receive either 0.6500 shares of Great Western common stock or $19.50 in cash for each HF Financial common share, subject to proration to ensure that in the aggregate 75% of HF Financial shares will be converted into stock. The exchange ratio is fixed, and the transaction is expected to qualify as a tax-free exchange with respect to shares of HF Financial common stock that are exchanged for Great Western common stock.
The transaction is expected to generate mid-single digit earnings per share accretion in the first full year after closing, an internal rate of return of more than 20%, minimal tangible book value per common share dilution and an earn back period of less than three years. Additionally, GWB's strong pro forma capital position will also support further growth. The Merger has been unanimously approved by the Board of Directors of both Great Western and Home Federal and is expected to close in the second quarter of 2016, subject to certain conditions, including the approval by Home Federal's stockholders and customary regulatory approvals. As is customary for GWB, the operations of HF Financial are expected to be fully integrated into GWB shortly after the transaction close date.
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