The $7.1 billion-asset
Peoples said in a press release Wednesday that it will pay $54 million in cash
for the Excelsior, Minn., lender. Peoples will also repay about $21 million of
recourse debt on behalf of Vantage.
Vantage, which was founded
in 2011, offers mid-ticket equipment leases mostly for IT equipment across a variety
of industries. The company has about $147 million of lease assets on Dec. 31.
Vantage will become a
subsidiary of Peoples Bank and most of its current leadership and associates
are expected to stay after the deal closes, including William Foudray, its co-founder
and CEO.
Bob Murphy, Vantage’s co-founder
and chairman, plans to retire.
Peoples said it expects the
deal to be 3% accretive to its 2022 earnings per share and 6% accretive the
following year. It should take less than four years for Peoples to earn back a
projected 8% dilution to its tangible book value.
“The addition of Vantage … will
allow us to build upon our recent success with our North Star Leasing
acquisition, while also becoming a top 100 U.S. leasing business based on
combined assets,” Chuck Sulerzyski, Peoples’ president and CEO, said in the release.
Peoples was advised by Hovde Group and Squire Patton Boggs (US). Vantage
and its equity owners were advised by Cherry Tree & Associates and Barack
Ferrazzano Kirschbaum & Nagelberg.
Thanks for helping us understand this topic. You have written it in a way that makes it very simple to understand. Thank you so much. Equipment Leasing Solutions.
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