J.C. Flowers has agreed to acquire Puerto Rico-based Island Finance from Santander Financial Services Inc. No financial terms were disclosed. The deal is expected to close in the next few months.
San Juan, Puerto Rico – April 3, 2017 – Santander Financial Services, Inc. (“Santander”) has reached a definitive agreement to sell the personal loan and sale finance loan assets comprising the Island Finance business (“Island Finance”) to funds advised by J.C. Flowers & Co. LLC and affiliates (“J.C. Flowers”), a leading private investment firm dedicated to investing globally in the financial services industry. The agreement is expected to close in the next few months and is subject to regulatory approvals and other customary closing conditions. As part of the transaction, an entity controlled by J.C. Flowers will continue to manage the business with a workforce of over 600 in Puerto Rico, which includes employees and temporary staff that are currently part of Island Finance, and will also assume the leases for the Island Finance branches.
With approximately $400 million of assets and more than 100,000 active customers, Island Finance has more than 50 years of history in Puerto Rico, operating 52 branches that cover 60 percent of the municipalities across the island.
“This strategic decision of the Santander Group to restructure its operations on the island will allow us to place greater emphasis on the commercial banking business,” said Fredy Molfino, President and CEO of Santander Puerto Rico. He added that Santander’s commitment to the island is as strong as more than 40 years ago when the institution began operations in Puerto Rico.
“Santander has managed this business exceptionally well, building Island Finance into a true market leader,” said Thomas Harding, Vice President of J.C. Flowers. “Island Finance serves Puerto Ricans with a commitment to responsible and transparent lending, and we are excited to work with its talented management team and branch staff to build on the solid reputation that Santander has fostered and continue to fill this critical financing need in Puerto Rico.”
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and commercial bank, headquartered in Spain, with a meaningful market share in 10 core countries in Europe and the Americas. It is among the world’s top banks by market capitalization. The bank’s purpose is to help people and businesses prosper, in a way that is simple, personal and fair. Founded in 1857, Santander had EUR 1.52 trillion in managed funds, 125 million customers, 12,200 branches and 188,000 employees at the close of 2016. Santander made attributable profit of EUR 6,204 million in 2016, an increase of 4% compared to the previous year.
About J.C. Flowers
J.C. Flowers is a leading private investment firm dedicated to investing globally in the financial services industry. Founded in 1998, the firm has invested more than $15 billion of capital in 47 portfolio companies in 17 countries across a range of industry subsectors including banking, insurance and reinsurance, securities firms, specialty finance, and services and asset management. With approximately $6 billion of assets under management, J.C. Flowers has offices in New York and London. For more information, visit jcfco.com.