The Alta Group announced that it served as financial advisor to Indianapolis-based Connext Financial, Ltd. in its recent acquisition by Engs Commercial Finance Co. of Lisle, IL. Connext Financial is a leading lender in industrial equipment finance and will become the Industrial Equipment Division of Engs Commercial Finance Co. The business will continue to be led by Ken Wuethrich, managing director, and David Stearns, senior vice president.
Engs Commercial Finance is one of the oldest and largest independent commercial finance companies, and its transportation finance vertical is recognized as one of the leaders in its market segment. Commenting on the acquisition, Craig Weinewuth, president & CEO of Engs Commercial Finance Co., indicated that the combined companies will originate $500 million in annual lease and loan originations.
Bruce Kropschot, senior managing director and Merger and Acquisition Advisory Practice leader for The Alta Group, noted that the Connext-Engs transaction was the fourth equipment finance company acquisition in 2016 in which The Alta Group played an important role. Following are the other recent transactions:
- In July, Atalaya Capital Management LP of New York City announced that funds managed by Atalaya had completed the acquisition of CG Commercial Finance of Irvine, CA. Atalaya is a privately held alternative investment advisory firm. CG Commercial Finance provides highly customized lease and finance solutions to large corporations for diverse assets typically costing more than $1 million, including equipment used in transportation, industry, distribution, mining, energy and technology. The Alta Group represented Atalaya Capital Management and provided due diligence services in support of this acquisition.
- In March, BofI Federal Bank of San Diego acquired approximately $140 million of equipment leases and assumed certain operations of Salt Lake City-based Pacific Western Equipment Finance, which was owned by Pacific Western Bank. BofI Federal Bank is a subsidiary of publicly owned BofI Holding Inc. The acquired business provides financing to middle-market companies for essential-use equipment ranging in cost from $250,000 to $5,000,000. The Alta Group assisted BofI Federal Bank in this acquisition by providing due diligence services.
- In January, Liberty Financial Group, Inc. of Hatfield, PA was acquired by Navitas Credit Corp. of Ponte Vedra, FL. Liberty Financial Group provides financing for vocational vehicles and related equipment in the transportation, construction, tree and landscape and other specialty markets. Navitas provides financing to small and medium sized businesses nationally through referral programs with equipment vendors, lease brokers and strategic alliances. The Alta Group initiated this acquisition and served as exclusive financial advisor to Liberty Financial Group.
Commenting on the current M&A market for equipment finance businesses, Kropschot stated, “We continue to see substantial interest in the acquisition of successful equipment leasing and finance companies. Prices continue to be attractive to sellers, and we expect to complete several more M&A transactions before the end of the year. Because of the active M&A market, The Alta Group has expanded its M&A staff, with experienced leasing veterans Jim Jackson and Patricia Voorhees filling important roles in serving our M&A advisory clients.”
The Alta Group is the leading global consultancy dedicated exclusively to the business of equipment leasing and asset finance. Since 1992, Alta has represented equipment leasing and finance companies, financial institutions, manufacturers and service providers, offering management consulting and expertise in global market entry, vendor and captive finance, professional development, legal services, asset management, mergers and acquisitions, and digital business advisory services.