In line with a strategy of expanding SEG membership, the $1.6 billion Baxter Credit Union in Vernon Hills, Ill., has effective this month completed a merger of the $60 million Target CU, which serves employees of the Minneapolis-based retail chain.
Baxter officials said Target, a healthy CU with 10,000 members, had approached Baxter last May about a possible merger at the suggestion of Cornerstone Advisors, a Scottsdale, Ariz. consultant, which had scouted potential partners.
“Target Credit Union saw the strategic value that a merger with a large, nationwide credit union like BCU could provide: the economies of scale necessary to serve a diverse nationwide member base,” said Mike Valentine, BCU president/CEO, in a formal statement. “We are honored they selected BCU and feel it is a privilege to partner with Target Corporation.”
Two years ago Baxter merged the $6 million Brunswick Employees CU of Lake Forest, Ill., which serves employees of the bowling equipment and boat manufacturer.
John Sahagian, vice president of marketing at Baxter, said his CU does look to open multiple branches at Target service locations in the U.S.
“We have no aggressive strategy of going after other credit unions like Target with corporate members but when opportunities like this arise, we welcome them,” said Sahagian.
As for Target CU, “they did have a culture that fits with ours,” said Sahagian.