TD Expands US Footprint with $13.4 Billion Acquisition of First Horizon

By Adriano Marchese

Toronto-Dominion Bank said Monday that it is accelerating its long-term growth strategy in the U.S. by acquiring Tennessee-based First Horizon Bank for $13.4 billion.

The Canadian banking and financial services company said it would pay $25 a share in the all-cash transaction.

TD said the deal is immediately accretive to adjusted per-share earnings and is expected to result in a fully-synergized return on invested capital of 10% in 2023.

TD said it expects to incur costs of $1.3 billion in the first two years following close related to the merger and integration of the business, and expects to generate around $610 million in pretax cost-synergies.

"[The acquisition] 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," Group President and Chief Executive Officer Bharat Masrani said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 28, 2022 07:03 ET (12:03 GMT)

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