CAMDEN – Camden National Corp., parent company of Camden National Bank and Acadia Trust, announced Tuesday that it plans to acquire Union Bankshares Co., the parent company of Union Trust Co., for approximately $72.5 million in cash and stock.

The acquisition, subject to regulatory and shareholder approvals, is expected to close by late 2007 or early 2008.

Camden National Corp. President and CEO Robert W. Daigle said Union Bankshares provides an important strategic complement to Camden National, extending its geographic reach to Hancock County and the Down East Maine. The acquisition also will allow Camden National to expand its product and service offerings and administer total wealth management assets in excess of $1.3 billion.

Union Trust will maintain its name in Hancock and Washington counties as a division of Camden National.

The combined organization will have more than $2.3 billion in assets and $1.5 billion in deposits. Camden National currently operates 27 branch locations and Union Trust has 13.

“This combination is a testament to both organizations’ dedication to independent, Maine-based community banking,” said Camden National Bank President and CEO Gregory A. Dufour.

Union Bankshares President and CEO Peter A. Blyberg said his company was attracted to Camden National as a partner due to its long-term commitment to Maine.

Daigle will continue in his role of president and CEO of the combined organization. Blyberg, who previously announced his intention to retire in late 2008, will be named vice chairman of Camden National Bank after the acquisition and Dufour will continue to serve as president and CEO of Camden National Bank. Any other employee changes have yet to be announced.