PNC beefs up commercial book with vendor-finance deal
PNC Financial Services Group is acquiring the vendor-financing business of the nonbank commercial lender ECN Capital in a deal that would add more than $1 billion of loans to its commercial portfolio.
The Pittsburgh company said in news release Tuesday that it is paying cash for ECN’s U.S.-based commercial and vendor-finance business, which includes $1.1 billion of construction, transportation, industrial, franchise and technology loans and leases. The deal is valued at $1.25 billion, according to a news release from Toronto-based ECN.
ECN’s commercial and vendor-financing unit, based in Horsham, Pa., provides equipment financing to manufacturers and dealers throughout the U.S. and Canada. The $366 billion-asset PNC intends to fold the unit into the equipment-finance arm in its corporate and institution banking segment.
Mike Lyons, the executive vice president and head of corporate and institutional banking at PNC, said that the acquisition “significantly enhances our existing vendor franchise, adding a national platform supporting leading vendors in several growing industries. Moving forward, we will be able to help these vendors and their clients by leveraging PNC’s strong capital and liquidity position to offer an expanded range of financing.”
PNC said that the deal would be “modestly accretive” to its 2017 earnings per share. It is expected to close in the second quarter.