Valley National announces sale-leaseback of 29 properties for $107M
Valley National announced it has entered into an agreement for sale-leaseback of 29 of its currently owned properties. The properties, consisting of 1 corporate location and 28 branches, will be sold for an aggregate cash purchase price of approximately $107M. The company expects to realize a pre-tax gain of approximately $81M. The transaction is expected to close in Q1 or Q2 and is subject to due diligence on the identified properties. In addition, Valley is announcing its plan to eliminate approximately 60 corporate positions as a part of continuous efforts to improve operating efficiencies. The annualized salary and benefit expense associated with these eliminations is expected to be in excess of $5M. The company expects to implement the majority of saves by the end of Q2.