On October 5, 2016, Georgetown Bancorp, Inc. (“Georgetown Bancorp”), Georgetown, Massachusetts, and Salem Five Bancorp (“Salem Five Bancorp”), Salem, Massachusetts, entered into a definitive merger agreement pursuant to which Salem Five Bancorp will acquire Georgetown Bancorp for approximately $49.2 million in cash. Upon completion of the merger, Georgetown Bank, the subsidiary of Georgetown Bancorp, will merge with and into Salem Five Cents Savings Bank, the subsidiary of Salem Five Bancorp. Under the terms of the merger agreement, Georgetown Bancorp shareholders will receive a cash payment equal to $26.00 per share of common stock.
Luse Gorman served as legal counsel to Georgetown Bancorp in the transaction. The Luse Gorman team was led by Eric Luse (Corporate/M&A) and Ned Quint (Corporate/M&A), and included Beverly White (Executive Compensation), Victor Cangelosi (Corporate/M&A) and Zac Davis (Corporate/M&A).
Georgetown Bancorp has approximately $300 million in total assets and operates offices serving Georgetown, North Andover and Rowley, Massachusetts, as well as Stratham, New Hampshire.
Salem Five Bancorp has approximately $4.0 billion in total assets and operates 30 retail branches in Essex, Middlesex, Suffolk and Norfolk Counties, Massachusetts.