BDT Capital Partners has agreed to acquire Commercial Credit, a commercial finance company. No financial terms were disclosed. Commercial Credit is a portfolio company of Lovell Minnick Partners. The deal is expected to close in the first quarter of 2019.
Commercial Credit, Inc., an equipment and accounts receivable finance company and the parent company of Commercial Credit Group Inc. and Commercial Funding Inc., and a portfolio company of Lovell Minnick Partners, today announced that it has partnered with BDT Capital Partners, a merchant bank that provides family- and founder-led businesses with long-term, differentiated capital, who will be making a majority equity investment in the company.
With this transaction, Commercial Credit, Inc., one of the largest independent commercial finance companies, will continue to expand its equipment and accounts receivable financing businesses.
President and CEO Dan McDonough states, “We’re thrilled to partner with BDT. Their culture, way of doing business and long-term perspective mirror ours and their patient capital will support the growth of our company, the development of our people and our ability to deliver superior customer service in the years to come. We thank Lovell Minnick for their support over the past seven years and appreciate their dedication and loyalty to our business and employees.”
“We are excited to partner with founder and CEO Dan McDonough and his highly-experienced management team,” said Dan Jester, President of BDT Capital Partners. “Commercial Credit’s specialized equipment finance expertise, focus on credit quality and superior customer service have contributed to its strong results. Our long-term capital, combined with Commercial Credit’s differentiated approach to commercial lending, will provide a solid foundation for the company to continue helping its customers navigate business cycles, acquire equipment and scale their own businesses.”
John Cochran, Partner at Lovell Minnick, commented, “We are extraordinarily proud of Commercial Credit and its accomplishments, not just during our long and productive partnership together, but over a history that spans nearly 15 years. The Company’s steady growth and consistent execution demonstrate the resilience of their business model, the strength of their team, and their commitment to serving their clients.” Brad Armstrong, Partner at Lovell Minnick, added,
“Commercial Credit exemplifies the type of successful independent specialty finance company we strive to find and build, one that is positioned to navigate an ever-evolving marketplace. This marks an important milestone, not just for Lovell Minnick and our limited partners, but for Commercial Credit, which is aligning itself with BDT, a premier organization with deep expertise and extensive resources available to perpetuate the company’s success.”
The transaction is expected to close in the first quarter of 2019 and is subject to customary closing conditions. Keefe, Bruyette & Woods, Inc. and Ardea Partners LP advised the Company in connection with the transaction.
About Commercial Credit, Inc.
Commercial Credit, Inc., through its wholly owned subsidiaries Commercial Credit Group Inc. and Commercial Funding Inc., provides equipment loans and leases to small and mid-sized businesses in the construction, fleet transportation, machine tool and manufacturing, and waste industries, and accounts receivable factoring in a variety of industries. Since its inception in 2004, the Company has originated over $4 billion of finance receivables. The company’s sales force is located throughout North America, is headquartered in Charlotte, NC and operates full-service offices in Buffalo, NY, Naperville, IL, Hamilton, ON and Salt Lake City, UT. For more information, please visit www.commercialcreditgroup.com, and www.commercialfund.com
About BDT Capital Partners
BDT Capital Partners provides family- and founder-led businesses with long-term, differentiated capital. The firm manages more than USD 9 billion across its investment funds and an additional USD 4.6 billion of co-investments from its global limited partner investor base. The firm’s affiliate, BDT & Company, is a merchant bank that works with family- and founder-led businesses to pursue their strategic and financial objectives. BDT & Company provides solutions-based advice and access to a world-class network of business owners and leaders.
About Lovell Minnick Partners
Lovell Minnick Partners LLC is a private equity firm focused on investing in middle market companies in the global financial services and related business services industries. Lovell Minnick provides developing companies with equity capital to support private company recapitalizations, execute majority buyouts, and pursue growth initiatives. Since its inception in 1999, Lovell Minnick Partners has raised over $3 billion in committed capital and has completed investments in over 50 platform companies. Targeted investment areas include asset management, financial product distribution, insurance, banks, specialty finance, and related technology and business services. Over its twenty-year history, Lovell Minnick has built a steady track record of investment returns through a consistent investment process that focuses on driving portfolio company growth, strategic activity, and operational improvement, without relying upon excessive financial leverage.