TD Bank to buy First Horizon in $13.4bn deal

TD Bank has agreed to buy First Horizon in an all-cash deal valued at $13.4bn, or $25.00 a share.

TD said on Monday that deal "accelerates its long-term growth strategy in the US by acquiring a premier regional bank with an aligned culture and risk-management framework".

The company's group president and chief executive Bharat Masrani said: "First Horizon is a great bank and a terrific strategic fit for TD. It provides TD with immediate presence and scale in highly attractive adjacent markets in the US with significant opportunity for future growth across the Southeast.

"Working with the First Horizon team, TD will build upon the success of its strong franchise and deliver the legendary customer experiences that differentiate us in every market across our footprint."

The transaction is expected to be immediately accretive at closing to TD's adjusted earnings per share and over 10% accretive to 2023 adjusted EPS on a fully-synergised basis.

Headquartered in Memphis, Tennessee, First Horizon had $89bn of assets as of 31 December 2021. The business operates 412 branches and serves more than 1.1m consumer, business and commercial customers across 12 states.

TD said it will benefit from First Horizon's strong regional presence, including leadership positions in Tennessee and Louisiana, additional density in Florida, the Carolinas and Virginia, and important footholds in the attractive Atlanta, Georgia, and Dallas and Houston, Texas markets.