Israel’s Bank Leumi has agreed to sell a 15% stake in its U.S. bank.
The company, which is based in Tel Aviv, said in a press release Monday that MSD Capital, which manages the assets of Dell Technologies founder Michael Dell, and Endicott Management are making the investment.
The $141 million deal is subject to regulatory approval.
The investment comes as Bank Leumi USA has been restructuring and implementing new operational plans under President and CEO Avner Mendelson.
"The successful implementation of a strategic plan in BLUSA over the past four years has positioned BLUSA as an attractive bank for investors,” Rakefet Russak-Aminoach, Bank Leumi's president and CEO, said in the release.
Endicott and MSD Capital will help Bank Leumi USA expand its customer base and gain greater access to U.S. capital markets, Russak-Aminoach added.
Wayne Goldstein, principal of Endicott and one of its two founding partners, is expected to join the boards of Bank Leumi and its U.S. bank.
"We are excited to make this investment in BLUSA together with MSD Capital,” Goldstein said. “The timing is ideal for both of us — [Bank Leumi USA] is showing stronger performance following internal restructurings that focused on business strategy, technology and infrastructure and human capital.”
The investment will allow Endicott to help Bank Leumi USA consider capital market transactions and strategic opportunities that were previously inaccessible, Goldstein added.
Sandler O’Neill and Kilpatrick Townsend & Stockton advised Bank Leumi. Schulte Roth & Zabel advised Endicott. Wachtell, Lipton, Rosen & Katz advised MSD Capital.