TORONTO and CHICAGO, Oct. 27,
2017 /CNW/ - Accord Financial Corp. ("Accord")
(TSX: ACD) announced today that Chicago-based CapX Partners ("CapX") has
joined the Accord group of companies. CapX, a leading provider of
equipment finance to middle market companies throughout the U.S.
since 1999, will continue to serve clients under the CapX Partners
banner.
Over the past 18 years, CapX established a strong brand in
equipment finance and will continue to do so under the Accord
umbrella. Since inception, CapX has launched four funds funding
over US$500 million of capital. The
entire CapX team, along with key corporate assets, will join Accord
through newly incorporated Accord CapX LLC.
Founded in 1978 and publicly traded on the Toronto Stock
Exchange, Accord has built its success over nearly four decades of
providing responsive and flexible financing solutions to small and
medium sized businesses across the United
States and Canada.
The transaction is valued at up to US$9
million, including US$2
million on closing, plus future consideration, which
includes Accord common stock, over three years based on portfolio
growth and profitability of Accord CapX LLC.
"Accord's strong balance sheet, sterling reputation and focus on
current asset financing makes them a great partner for CapX,"
stated Jeffry Pfeffer, CapX Managing
Partner. "Accord's public ownership profile will be helpful for
future capital raising needs and will improve CapX's ability to
provide competitive financing in the marketplace."
Accord's Chief Executive Officer Tom
Henderson remarked, "Adding CapX to our family recognizes
our renewed emphasis on Accord's U.S. growth trajectory as we
continue to expand the broad range of financing options we can
offer, providing unparalleled combined experience and an even
stronger management team," adding, "combining these two brands
creates a commercial finance powerhouse from coast to coast."
Together, Accord and CapX establish a financial services
platform that can lend up and down a company's balance sheet
creating a one-stop source of senior secured financing to middle
market business. According to Pfeffer, "Market conditions continue
to be favorable for a well-funded middle market focused national
equipment lessor to serve the various pockets of underserved middle
market borrowers."
Accord Senior Vice President Simon
Hitzig along with CapX Managing Partner Jeffry Pfeffer,
Founding Partner James Hallene, and Partners Eric Starr and
Barrett Carlson, structured the
transaction.
About Accord Financial Corp.
Accord Financial Corp. is a leading North American finance
company providing distinctive working capital solutions to
companies from coast to coast. Accord's versatile finance programs
cover the full spectrum of asset-based lending, from factoring and
inventory finance, to equipment leasing and trade finance.
About CapX Partners
Founded in 1999, CapX Partners is a specialty finance company
that focuses on companies looking for debt financing in the
$2-$20 million range. CapX provides
senior loans and leases and favors manufacturing, distribution,
technology, energy and healthcare industries with an emphasis on
revenue producing fixed assets. For more information on CapX, visit
www.capxpartners.com.
SOURCE Accord Financial Corp.