BankBoston Corp. has entered an agreement with Gordon Brothers to purchase its specialty finance company, GBFC, Inc. for $40 million.
GBFC is the largest asset-backed lender in the country exclusively devoted to meeting the financing needs of retailers.
"GBFC's well-established national retail lending business will fit exceptionally well into BankBoston's existing New England and national asset-based lending strategy," said Edward Collin, a group executive at the Boston bank.
GBFC has originated and agented over $300 million in loans for middle- market retailers throughout North America.
"The sale of GBFC will allow Gordon Brothers to further focus on its growing role in retail mergers, acquisitions and restructurings," said Robert C. Sager, president of Gordon Brothers.
"The retail industry is going through a very rapid and fundamental change. Combining GBFC's capabilities with the extensive global resources of BankBoston will greatly increase the availability of capital to the retail industry nationwide," Mr. Sager said.