Pryor Cashman Represents Ridgewood Savings Bank in Acquisition
Pryor Cashman acted as special tax counsel to Ridgewood Savings Bank in its acquisition of City & Suburban Federal Savings Bank. The acquisition for $120 million cash plus $550 million of assumed liabilities is structured as a forward cash merger which allows Ridgewood to use purchase accounting for tax purposes without burdening the stockholders of City & Suburban with a second layer of federal income tax.
The same type of forward cash merger has been utilized successfully in other acquisitions including The Blackstone Group's acquisition of the real estate investment trust (REIT), Equity Office Property Trust, for approximately $20 billion cash plus $16 billion of assumed liabilities in one of the largest leverage buyouts (LBO) in history.
To read the February 23, 2007, Business Wire report about the transaction, please click here.
