Canadian commercial financing company ECN Capital Corp said on Thursday it would buy U.S.-based Service Finance Holdings LLC for $410 million (US$304 million) in cash.
ECN Capital offers financial services to rail and commercial aviation markets, while privately-held Service Finance lends for home improvement projects in the United States.
Toronto-based ECN Capital sold its U.S. commercial and vendor finance business to PNC Financial Services Group in February for about US$1.25 billion in cash.
Founded in 2004, Boca Raton, Florida-based Service Finance originates and services prime and super-prime installment contracts to finance home improvement projects.
ECN Capital, with over US$4.6 billion assets under management, said the acquisition will be immediately add to adjusted earnings per share and is expected to close in the third quarter.
BMO Capital Markets, CIBC Capital Markets and Macquarie Capital served as ECN Capital’s financial advisers, while Baker & Hostetler LLP was the legal counsel.
Update: Service Finance Holdings is a portfolio investment of U.S. private equity firm Flexpoint Ford. Flexpoint has held a significant minority equity stake in the company since 2015.
(Reporting by Ahmed Farhatha in Bengaluru; Editing by Saumyadeb Chakrabarty and Sriraj Kalluvila)
(This story has been edited by Kirk Falconer, editor of PE Hub Canada)
Photo courtesy of Reuters/Mark Blinch