People's United to buy national equipment finance business
People's United Financial in Bridgeport, Conn., has agreed to buy a large equipment finance firm in Philadelphia.
The $40 billion-asset People’s United said in a press release Wednesday that it expects to complete its purchase of Leaf Commercial Capital in the third quarter. The deal includes $730 million of net investment in loans and leases and roughly $250 million of securitizations.
People’s United did not disclose how much it will pay, though it said the deal should immediately accretive to its earnings.
Leaf originates about $500 million in loans annually. The national lender has 250 employees, a call center in Southern California and a sales and servicing facility in Moberly, Mo.
"Leaf is a highly scalable commercial lending platform with attractive risk-adjusted returns and a complementary expansion of our existing specialty finance businesses,” Jack Barnes, People’s United’s president and CEO, said in the release.
People’s United said its equipment finance business will have $4 billion in assets when the deal closes.
J.P. Morgan Securities and Simpson Thacher & Bartlett advised People's United. Keefe, Bruyette & Woods and Winston & Strawn advised Leaf.