CIBC closes $5 billion PrivateBancorp acquisition, will rebrand theater that hosts ‘Hamilton’
Larry Richman, left, is president and CEO of PrivateBank and senior executive vice president and group head of CIBC’s U.S. region. Victor Dodig, right, is president and CEO of CIBC. (PrivateBancorp)
Canadian bank CIBC sealed the deal Friday on its $5 billion acquisition of Chicago-based PrivateBancorp and confirmed plans to rebrand the PrivateBank Theatre, current host of the hit musical "Hamilton."
The deal has been in the works for about a year. For Toronto-based CIBC, it is a chance to expand its reach in the U.S. PrivateBancorp, which operates as The PrivateBank, gains access to technology that will help it expand its offerings to clients, said Larry Richman, president and CEO of PrivateBancorp.
Those offerings include mobile capabilities and products that enhance the bank’s ability to deliver to middle-market clients, Richman said.
"We are a very branch-light organization," Richman said. "The goal of the branches — and all our branches are strategically important to us — is this growth, not to build branches, but to reach the right tech solutions to meet the needs of our clients."
PrivateBancorpwill keep its nearly 40 offices open, including the more than 20 in the Chicago area. They are expected to be rebranded to CIBC this fall, Richman said.
No layoffs are planned, said Richman, who will continue to serve as president and CEO of the U.S. CIBC banks after the name change. He also became senior executive vice president and group head of CIBC’s U.S. region, effective Friday.
The PrivateBank Theatre in the Loop also will undergo a rebranding as "time allows," Richman said. The theater’s new name is pending. Other PrivateBank sponsored venues, such as The PrivateBank Fire Pitch soccer fields near Addison Street and Western Avenue, also will be rebranded.
CIBC first offered to buy the bank last June in a cash and stock deal valued at $3.8 billion, but after President Donald Trump was elected in November, the valuations of U.S. banks improved.
PrivateBancorp stockholders will receive $27.20 in cash and 0.4176 of a CIBC common share per share of PrivateBancorp common stock held, a PrivateBancorp spokeswoman confirmed.
The acquisition will help CIBC expand its reach in North America and give its customers access to U.S. banking services. Founded in 1867, CIBC has 11 million personal banking and business clients.
"This is purely a client-driven strategy," said Victor Dodig, president and CEO of CIBC. "A significant number of (our commercial banking clients) have banking requirements in the U.S. we were not able to fulfill."