Endicott Management Company’s investment in Bank Leumi le-Israel Corporation

Sandler O’Neill & Partners, L.P. served as financial advisor to Bank Leumi and Kilpatrick Townsend & Stockton LLP provided legal advice. Endicott was advised by the law firm Schulte Roth & Zabel LLP and MSD Capital was advised by the law firm Wachtell, Lipton, Rosen & Katz.

Bank Leumi le-Israel B.M. has signed an agreement providing for strategic investment into Bank Leumi le-Israel Corporation (“BLC”), the U.S. bank holding company of Bank Leumi USA (“BLUSA”).

The strategic investment, which involves the sale by Bank Leumi of shares it holds in BLC, is being led by Endicott Management Company (“Endicott”) and includes MSD Capital, L.P. (“MSD Capital”), representing an aggregate of 15% of the shares of BLC. The aggregate value of the BLC shares to be sold is anticipated to amount to approximately USD141 million, thus reflecting a net worth value just under 1 billion USD for Bank Leumi USA.

Completion of the transaction is subject to customary closing conditions, including any required regulatory approvals. The transaction is not expected to have a material effect on the Leumi Group’s business.

Founded in 1996, Endicott is a leading U.S. investment firm, with their main field of expertise being investment in financial institutions, particularly banks. Wayne Goldstein, one of two founding partners of Endicott, is expected to be appointed as a Board Member of both BLUSA and BLC following the closing of the transaction.

MSD Capital is a private investment firm, established in 1998, to manage the assets of Michael Dell, founder of Dell Technologies, and his family.

This investment will bring strategic value to BLUSA and is a further step in the successful implementation of a new operational and business plan undertaken during the last four years under the leadership of BLUSA President & CEO, Avner Mendelson. The transaction will enable BLUSA to take further steps in its continued growth.

The Schulte team advising Endicott was led by bank regulatory partner Joseph Vitale (Picture) and M&A and securities associates Lawrence Natke and Caitlin Cornell.

Involved fees earner: Joseph Vitale – Schulte Roth & Zabel; Caitlin Cornell – Schulte Roth & Zabel; Lawrence Natke – Schulte Roth & Zabel; Joseph Vitale – Schulte Roth & Zabel;

Law Firms: Schulte Roth & Zabel;

Clients: Endicott Management Company;


Author: Ambrogio Visconti