Global Consumer Acquisition Corp. Signs Letter of Intent to Acquire Service1st Bank of Nevada
September 09 2009 - 8:00AM
PR Newswire (US)
Contemplated Transaction Continues to Strengthen Western Liberty
Bancorp NEW YORK and LAS VEGAS, Sept. 9 /PRNewswire-FirstCall/ --
Global Consumer Acquisition Corp. ("GCAC") (NYSE Amex: GHC) and
Service1st Bank of Nevada ("Service1st") today jointly announced
that they have signed a letter of intent for the acquisition by
GCAC of Service1st in an all stock transaction. GCAC is expected to
become Western Liberty Bancorp ("WLB"), a new bank holding company,
following regulatory and shareholder approvals. The terms are
non-binding and subject to due diligence and other customary
conditions prior to signing the definitive agreement. Service1st is
a Nevada community bank with approximately $204 million in assets
and approximately $159 million in deposits as of June 30, 2009.
Service1st holds a Nevada bank charter. Transaction Details: -- The
consideration would be payable entirely in common stock of WLB. --
The purchase price for Service1st would be equal to 1.0x its agreed
upon book value at the closing date of the transaction. The number
of shares to be issued would be determined by the average closing
price of the five trading days immediately prior to the closing
date. -- On or prior to the second anniversary of the closing date,
if the common stock of WLB surpasses a value of $12.75 per share
for 30 consecutive trading days, an additional "earn out" provision
of 20% of the agreed upon book value of Service1st (at the closing
date) would be added to the purchase price. The earn out valuation
will be determined by the average closing price of WLB shares
during the first 30 consecutive trading days at which WLB common
stock surpasses $12.75 per share. -- William E. Martin, current
Chief Executive Officer and Vice Chairman of Service1st, would
become Chief Executive Officer of WLB and would remain as Chief
Executive Officer of Service1st. -- John Gaynor, current President
and Chief Operating Officer of Service1st, would become President
of WLB and would remain in his current position at Service1st. --
George Rosenbaum would serve as Chief Financial Officer of both WLB
and Service1st. "The acquisition of Service1st would be a model
transaction for us, and we look forward to pursuing this together
with the many similar opportunities that we expect to become
available in the Nevada marketplace," commented Jason Ader,
Chairman of WLB. "We are working to create a highly scalable
regional bank led by premier management with a track record of
creating shareholder value." Ader added, "We are incredibly excited
that Bill Martin and John Gaynor would look to join WLB upon the
consummation of such a transaction with Service1st. They are
tremendously talented and well-respected Nevada bankers, and we
expect they would be valuable additions to WLB." Bill Martin
observed on behalf of Service1st, "This is tremendous for
Service1st Bank, our shareholders and community. WLB's strategy,
working with our bank, opens the door for major opportunities for
expansion and makes a huge statement about WLB's confidence in the
future of the Nevada economy." Service1st Management: William E.
Martin William E. Martin is the CEO and Vice Chairman of Service1st
Bank of Nevada. From 1999 to 2007, he was Executive Vice President
of Zions Bancorporation, a regional bank holding company with more
than 500 branches throughout the Southwest. He also served as
Chairman, President and CEO of Nevada State Bank, a Zions
subsidiary. Mr. Martin served as the President and CEO of Pioneer
Citizens Bank of Nevada, a subsidiary of Pioneer Bancorporation,
from 1989 until 1999, at which time Pioneer Citizens was acquired
by Zions Bancorporation and merged into Nevada State Bank. From
1983 to 1989 he served as president and CEO of Nevada National Bank
and prior to that period he was Deputy Comptroller for
Mulitnational Banking with the Office of the Comptroller of the
Currency in Washington, D.C. He obtained his Bachelor's Degree in
Business Administration from North Texas State University. John
Gaynor John Gaynor has more than 30 years of experience in the
financial services industry, and is currently the President and
Chief Operating Officer of Service1st Bank of Nevada. He was an
establishing member of Bank of Nevada, where he was the President,
CEO and Vice Chairman of the Board. Prior to Bank of Nevada, Mr.
Gaynor was co-founder of Commercial Bank of Nevada, where he was
President and CEO. Mr. Gaynor has also served as Executive Vice
President and Chief Banking Officer for Continental National Bank
in Las Vegas, and held executive-level positions with First
Interstate Bank of Nevada. He obtained his bachelors and masters
degree from the University of Nevada (Reno) and is a graduate of
Pacific Coast Banking School. About Global Consumer Acquisition
Corp. Global Consumer Acquisition Corp. is a blank check company
organized for the purpose of effecting a merger, capital stock
exchange, asset or stock acquisition, exchangeable share
transaction, joint venture or other similar business combination
with one or more domestic or international operating businesses.
About Service1st Bank of Nevada Chartered on January 16, 2007,
Service1st Bank of Nevada is a privately held Nevada community bank
headquartered in Las Vegas with approximately 200 shareholders. As
of June 30, 2009, Service1st had total assets of $204 million,
loans of $143 million and deposits of $159 million. Forward-Looking
Statements This press release may contain forward-looking
statements within the meaning of the federal securities laws. These
forward-looking statements inherently involve risks and
uncertainties that are detailed in the Company's prospectus and
other filings with the Securities and Exchange Commission and,
therefore, actual results could differ materially from those
projected in the forward-looking statements. The Company assumes no
obligation to update publicly or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise. Contact: Jason N. Ader Global Consumer Acquisition
Corp. (212) 445-7800 William E. Martin Service1st Bank of Nevada
(702) 966-7400 DATASOURCE: Global Consumer Acquisition Corp.
CONTACT: Jason N. Ader of Global Consumer Acquisition Corp.,
+1-212-445-7800; or William E. Martin of Service1st Bank of Nevada,
+1-702-966-7400
Copyright