Pinnacle Financial Partners in Nashville, Tenn., has acquired a stake in a health care lender.
The $6 billion-asset Pinnacle said in a press release Wednesday that it paid $75 million for a 30% stake in Bankers Healthcare Group in Southwest Ranches, Fla.
Bankers Healthcare earned about $49 million last year on $98 million in revenue. The firm's loan originations, which come from a variety of distribution channels, are largely sold through an online auction process to a network of roughly 200 community banks.
"We have enjoyed partnering with [Bankers Healthcare] over the last few years on several initiatives," M. Terry Turner, Pinnacle's president and chief executive, said in the release. "We are particularly excited about incremental potential to distribute our financial services through their national distribution channel."
As part of the investment, Pinnacle will designate one represent to join Bankers Healthcare's four-member board. Bankers Healthcare's three founders and executive officers will retain a 70% stake and will remain at the firm "for an extended period of time," the release said.
Pinnacle said it expects that the investment will be 7% to 9% accretive to its 2015 earnings per share. The investment was funded with cash and bank debt.
Sandler O'Neill served as Pinnacle's financial adviser.