Arkansas-based Home BancShares completes acquisition of Happy Bancshares

Conway, Ark.-based Home BancShares Inc., the parent company of Centennial Bank, on April 1 completed its previously announced acquisition of Texas-based Happy Bancshares Inc., the parent company of Happy State Bank.

Under the terms of the agreement, an acquisition subsidiary of Home BancShares merged with and into Happy Bancshares; Happy Bancshares merged with and into Home BancShares; and immediately thereafter, Happy State Bank merged with and into Centennial Bank.

Home BancShares will issue approximately 42.4 million shares of its common stock valued at approximately $958.8 million as of April 1. Additionally, holders of Happy Bancshares stock appreciation rights received approximately $3.1 million in cash in cancellation of their stock appreciation rights immediately before the merger, for a total transaction value of approximately $961.9 million.

Home BancShares now operates 76 branches in Arkansas, 78 branches in Florida, 62 branches in Texas, five branches in South Alabama, and one branch in New York City, as a result of the acquisition.

Happy Bancshares had approximately $6.81 billion in total assets, $3.59 billion in loans, and $5.81 billion in deposits, as of Dec. 31, 2021, according to a news release.

Piper Sandler & Co. was the financial adviser, and Mitchell Williams Selig Gates & Woodyard P.L.L.C. was the legal counsel to Home BancShares. Stephens Inc. was the financial adviser, and Alston & Bird LLP was the legal counsel to Happy Bancshares. Piper Sandler and Stephens Inc. issued a fairness opinion to Home BancShares and Happy Bancshares, respectively.