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.

People’s United CEO Jack Barnes.
People’s United, led by CEO Jack Barnes, is building a national equipment finance business with roughly $4 billion in assets.

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.

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