Coast Capital Equipment Finance Ltd. (CCEF), a subsidiary of Coast Capital Savings, and Travelers Financial Corporation (TFC) announced that the assets of the prime equipment and vehicle finance business of TFC will become part of the Coast Capital Group of Companies.
The deal is expected to close early next month. Following the close, the consolidated equipment finance business of the Coast Capital Group of Companies will be carried out under CCEF and two new entities, Travelers Finance Ltd. and Travelers Leasing Ltd.
The combined organizations' position in the Canadian equipment financing sector will be strengthened as a result of this agreement. The transaction will allow the two organizations to align their combined expertise and core strengths, while capitalizing on shared efficiencies and reaping the benefits of increased opportunities, including a broader customer base across the country and positioning for future growth.
TFC is one of the largest independent finance and leasing companies in Canada, offering a wide range of assets-based financing solutions to commercial and industrial sectors. Headquartered in Burnaby B.C., they also have offices in Alberta, Saskatchewan, Manitoba and Ontario.
"At Travelers we're proud of all our employees and leadership team have accomplished. Finding an organization that shares mutual goals for growth and improved service means that we can continue to watch our team grow and succeed while ensuring that we're doing the best we can for our customers in a competitive marketplace," says Jim Case, CEO, Travelers Financial Corporation "This opportunity holds so much potential and really puts us on the map as an industry leader."
"We're excited about the possibilities that bringing Travelers' business into the Coast Capital Group of Companies offers," says Tracy Redies, Coast Capital Savings' President and CEO. "With our combined industry expertise and superior offerings, this deal brings our customers several new financing options that will ultimately help our business customers access the tools they need to succeed and continue to grow."
Under the terms of the agreement, Travelers' shareholders will have a minority equity interest in the combined operations. TD Securities Inc. acted as financial advisor to Coast Capital Savings in connection with the transaction.
CCEF is a subsidiary of Coast Capital Savings. Coast Capital Savings is Canada's second largest credit union, owned by its 512,000 members. Coast Capital Savings, directly and through CCEF offers commercial and industrial equipment leasing and financing to companies located from British Columbia to Ontario.
The activities of CCEF are focused on securing financing opportunities primarily in the transportation, manufacturing, and construction markets, as these financings are secured with strong resale values to mitigate risk.
TFC was founded in 1986, and has since maintained a focus on the mid-market equipment leasing business. TFC offers a wide range of asset-based financing solutions to commercial and industrial sectors including transportation, construction, manufacturing, and other capital intensive industries, as well as corporate aircraft and automobile leasing.