KeyCorp and the Bank of Boston said Friday they have reached a definitive agreement for the sale of Bank of Boston affiliates in Maine and Vermont to KeyCorp.
Under terms of the agreement, KeyCorp will acquire the Casco Northern Bank, based in Portland, Maine, and Bank of Vermont, based in Burlington, for $198.5 million in cash.KeyCorp is the parent company of Key Bank of Utah and other financial subsidiaries.
Casco Northern has 34 offices in Maine and total assets of $1.1 billion. Bank of Vermont has 12 offices and total assets of $700 million.
Key Bank of Maine, a KeyCorp affiliate based in Portland, is the second largest bank in the state with $2.6 billion in assets and 92 offices. The combination of Key Bank of Maine and Casco Northern would create Maine's largest commercial bank.
KeyCorp does not have banking offices in Vermont, but has a considerable banking franchise in upstate New York, adjacent to the major markets served by the Bank of Vermont.
The acquisition is presently scheduled to close in late 1994. The operations of the two acquired banks will be merged with KeyCorp's operations and there will be branch consolidations in Maine. The acquisition will add to KeyCorp's earnings in 1995.