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PNC Financial to Buy ECN Capital's US C&V to Boost Portfolio

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The PNC Financial Services Group, Inc. (PNC - Free Report) announced a deal to acquire the U.S.-based commercial and vendor finance (U.S. C&V) business of ECN Capital Corp in an all cash transaction.

The deal, which will likely close in the second quarter of 2017, is valued at $1.1 billion and includes a portfolio of construction, transportation, industrial, franchise and technology loans and leases.

PNC Financial expects the acquisition to be marginally accretive to its earnings in 2017.

As part of the agreement, all the employees of ECN Capital U.S. C&V will be absorbed by PNC Financial Bank N.A. Also, the acquired portfolio will be integrated in the PNC Equipment Finance business, which is part of the Corporate & Institutional Banking segment. PNC Financial also expects that the existing clients and vendors of the ECN Capital will continue to work with the existing ECN capital team.

ECN Capital's U.S. C&V business is similar to that of PNC Financial. Further, it serves industries and a client size that was previously not the focus of PNC Financial.

The acquisition shall enable PNC Financial to offer financing solutions to leading vendors in several growing industries.

Citigroup Global Markets Inc., a division of Citigroup Inc. (C - Free Report) , is serving as financial advisor to PNC Financial.

Our Viewpoint

PNC Financial’s efforts to benefit from opportunistic acquisitions along with cost saving strategies assure us of its growth potential. Further, it also reflects the company’s capital strength.

PNC Financial’s stock increased 49.1% over the last six months outperforming the Zacks categorized Banks - Major Regional industry’s 33.8% rally.




PNC Financial currently carries a Zacks Rank #2 (Buy).

Other finance stocks worth considering include Hancock Holding Company and First Bancorp (FBNC - Free Report) . Both these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Hancock has witnessed an upward earnings estimate revision of 12% for the current year in the past 60 days. Also, its share price is up 106.9% over the last one year.

First Bancorp has witnessed an upward earnings estimate revision of 3% for the current year in the past 30 days. Also, its share price is up 67.44% over the last one year.

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