Regions Bank to Acquire Leading Equipment Finance Lender Ascentium Capital
February 27 2020 - 9:00AM
Business Wire
Regions Bank today announced that it has entered into a
definitive agreement to acquire Ascentium Capital LLC from Warburg
Pincus, a global private equity firm focused on growth
investing.
Ascentium Capital, headquartered in Kingwood, Texas, is the
largest independent equipment finance lender in the United States
with approximately $2 billion in loans and leases as of year-end
and originations of $1.5 billion in 2019. Partnering with nearly
4,000 manufacturers, dealers and distributors to finance
essential-use equipment for small business customers, Ascentium
Capital offers comprehensive financing solutions through more than
460 employees.
“Ascentium Capital’s experienced management team has built a
strong company known for providing America’s small businesses
access to the capital they need to grow, and we are excited to
welcome them to Regions,” said Ronnie Smith, senior executive vice
president and head of the Regions Corporate Banking Group.
“Leveraging the technology, speed and convenience that Ascentium
Capital is known for in combination with Regions’ broad spectrum of
banking solutions provides a meaningful opportunity to attract new
customers and deepen relationships across our combined customer
base.”
The addition of Ascentium Capital expands Regions’ current
offerings for small business customers and complements the bank’s
established equipment finance and commercial banking businesses
serving middle market and large companies. The transaction provides
Regions with a scalable, tech-enabled equipment finance
organization with same-day credit decisions and funding for small
business customers. Ascentium Capital’s seasoned management team
combined with its proprietary underwriting technology platform has
delivered strong performance throughout credit cycles since its
inception.
“We are pleased to join Regions, a firm known for its commitment
to the customer experience and a long history of providing
comprehensive banking solutions to companies of all sizes,” said
Tom Depping, chief executive officer of Ascentium Capital. “This
combination will enable us to expand our reach and relevance in
serving our vendors and small business customers while continuing
to provide seamless service.”
The transaction is expected to close during the second quarter
of 2020, subject to satisfaction of customary closing conditions.
Financial terms are not disclosed. Morgan Stanley & Co. LLC
served as financial advisor to Regions in connection with the
transaction and Sullivan & Cromwell LLP served as its legal
counsel. Piper Sandler & Co. served as financial advisor to
Ascentium Capital and Cleary Gottlieb Steen & Hamilton LLP and
Vinson & Elkins LLP served as legal counsel to Ascentium
Capital and the sellers.
About Regions Financial Corporation
Regions Financial Corporation (NYSE:RF), with $126 billion in
assets, is a member of the S&P 500 Index and is one of the
nation’s largest full-service providers of consumer and commercial
banking, wealth management, and mortgage products and services.
Regions serves customers across the South, Midwest and Texas, and
through its subsidiary, Regions Bank, operates approximately 1,400
banking offices and 2,000 ATMs. Regions Bank is an Equal Housing
Lender and Member FDIC. Additional information about Regions and
its full line of products and services can be found at
www.regions.com.
Forward-Looking Statements
This release may include forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995, which
reflect Regions Financial’s current views with respect to future
events and financial performance. The words “anticipates,”
“intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,”
“will,” “may,” “could,” “should,” “can” and similar expressions
often signify forward-looking statements. Forward-looking
statements are not based on historical information, but rather are
related to future operations, strategies, financial results or
other developments. Forward-looking statements are based on
management’s expectations as well as certain assumptions and
estimates made by, and information available to, management at the
time the statements are made. Those statements are based on general
assumptions and are subject to various risks, uncertainties and
other factors that may cause actual results to differ materially
from the views, beliefs and projections expressed in such
statements. If underlying assumptions prove to be inaccurate or
unknown risks or uncertainties arise, actual results could vary
materially from these projections or expectations. Factors that
could cause Regions Financial’s actual results to differ from those
described in the forward-looking statements include: the
possibility that regulatory and other approvals and conditions to
the proposed transaction are not received or satisfied on a timely
basis or at all, or contain unanticipated terms and conditions;
delays in closing the proposed transaction; expected synergies,
cost savings and other financial or other benefits of the proposed
transaction might not be realized within the expected timeframes or
might be less than projected; difficulties in integrating the
business; inability of Regions to effectively cross-sell products
to Ascentium’s customers; and risks identified in Regions
Financial’s Annual Report on Form 10-K for the year ended December
31, 2019, and its subsequent filings with the Securities and
Exchange Commission. However, these risks and uncertainties are not
exhaustive. Other sections of such filings describe additional
factors that could impact Regions Financial’s business, financial
performance and pending or consummated acquisition transactions,
including the proposed transaction. You should not place undue
reliance on any forward-looking statements, which speak only as of
the date made. We assume no obligation to update or revise any
forward-looking statements that are made from time to time.
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Investor Relations Contact: Dana Nolan 205-264-7040
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