TD Bank to buy First Horizon in $13 billion deal

TD Bank is acquiring First Horizon Corp. of Tennessee in a deal valued at $13.4 billion, according to a Monday announcement.

Formally known as Toronto-Dominion Bank, TD — which has headquarters in Cherry Hill — will pay $25 in cash for each First Horizon share outstanding, representing a 37% premium to Friday’s closing price of $18.25.

“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 U.S. with significant opportunity for future growth across the Southeast,” Bharat Masrani, group president and CEO for TD Bank Group, said. “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.”

First Horizon operates 412 branches and has more than 1.1 million consumer, business and commercial customers across 12 states. It has a large presence in Tennessee and Louisiana and “important footholds” in Atlanta, Dallas and Houston, according to the statement.

Following the closing of the transaction, Bryan Jordan, CEO and president of First Horizon, will join TD as vice chair, TD Bank Group, reporting to Masrani, and will join the TD senior executive team. He will also be named to the boards of directors of TD’s U.S. banking entities as a director and chair. Jordan will continue to be based in Memphis.

Leo Salom, group head, U.S. Retail, TD Bank Group, and CEO and president, TD Bank, will lead the combined businesses.

The transaction is expected to close in the first quarter of TD’s 2023 fiscal year and is subject to customary closing conditions.