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Wintrust Financial to Acquire $581M Loans from GE Capital
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In line with its expansion strategy, Wintrust Financial Corporation (WTFC - Free Report) inked a deal to acquire around $581 million in performing loans and related relationships from GE Capital Franchise Finance, a subsidiary of General Electric Company (GE - Free Report) .
The loans are related to GE Capital’s restaurant franchise finance business, mainly quick service restaurant concepts in the Midwest and in the Western region of the U.S. Wintrust Financial entered into the deal though its unit Wintrust Franchise Finance which has market presence for around 15 years and serves over 100 clients in the nation.
The deal is expected to close in the third-quarter 2016. Notably, Wintrust Financial expects the transaction is to be slightly accretive to its 2016 earnings per share and accretive in 2017.
Apart from Wintrust Financial, GE entered into separate transactions with First Horizon National Corporation (FHN - Free Report) and Sterling National Bank to sell most of GE Capital’s U.S. restaurant franchise financing loans. The move is in line with GE’s efforts to trim its financial wing and focus more on its core industrial business.
President and CEO of Wintrust Financial, Edward J. Wehmer stated, “This transaction represents the continued strategic expansion of our franchise finance business. It is a business we know well and the loans acquired are to firms that, in most cases, are well known to our experienced staff. We look forward to continuing to serve the franchise finance market.”
With $23 billion worth of assets, Wintrust runs 15 community bank subsidiaries with more than 152 banking locations spread in the greater Chicago and southern Wisconsin market areas. The Illinois-based company is on an expansion spree as it continues to pursue growth opportunities.
The latest deal follows Wintrust’s acquisition of Wisconsin-based Generations Bancorp. Notably, since 2015, Wintrust has announced four acquisition deals including Generations Bancorp. We believe the company should benefit from its expansion moves.
Wintrust Financial currently carries a Zacks Rank #3 (Hold). Enterprise Financial Services Corp. (EFSC - Free Report) is better-ranked stock, sporting a Zacks Rank #1(Strong Buy).
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Wintrust Financial to Acquire $581M Loans from GE Capital
In line with its expansion strategy, Wintrust Financial Corporation (WTFC - Free Report) inked a deal to acquire around $581 million in performing loans and related relationships from GE Capital Franchise Finance, a subsidiary of General Electric Company (GE - Free Report) .
The loans are related to GE Capital’s restaurant franchise finance business, mainly quick service restaurant concepts in the Midwest and in the Western region of the U.S. Wintrust Financial entered into the deal though its unit Wintrust Franchise Finance which has market presence for around 15 years and serves over 100 clients in the nation.
The deal is expected to close in the third-quarter 2016. Notably, Wintrust Financial expects the transaction is to be slightly accretive to its 2016 earnings per share and accretive in 2017.
Apart from Wintrust Financial, GE entered into separate transactions with First Horizon National Corporation (FHN - Free Report) and Sterling National Bank to sell most of GE Capital’s U.S. restaurant franchise financing loans. The move is in line with GE’s efforts to trim its financial wing and focus more on its core industrial business.
President and CEO of Wintrust Financial, Edward J. Wehmer stated, “This transaction represents the continued strategic expansion of our franchise finance business. It is a business we know well and the loans acquired are to firms that, in most cases, are well known to our experienced staff. We look forward to continuing to serve the franchise finance market.”
With $23 billion worth of assets, Wintrust runs 15 community bank subsidiaries with more than 152 banking locations spread in the greater Chicago and southern Wisconsin market areas. The Illinois-based company is on an expansion spree as it continues to pursue growth opportunities.
The latest deal follows Wintrust’s acquisition of Wisconsin-based Generations Bancorp. Notably, since 2015, Wintrust has announced four acquisition deals including Generations Bancorp. We believe the company should benefit from its expansion moves.
Wintrust Financial currently carries a Zacks Rank #3 (Hold). Enterprise Financial Services Corp. (EFSC - Free Report) is better-ranked stock, sporting a Zacks Rank #1(Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>