Accord Financial Corp. announced 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 $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 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 businesses. 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 with Accord.
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.
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.