Marlin Business Services Corp. announced it has acquired Fleet Financing Resources, LLC (FFR), a provider of equipment finance credit products focused on the commercial vehicle market.
Exact terms of the transaction were not disclosed but Marlin expects the transaction to be accretive to the company’s full year 2018 earnings per share and to generate strong returns on invested capital by accelerating growth and further leveraging the company’s fixed infrastructure costs.
Founded in 2002, FFR specializes in the leasing and financing of both new and used commercial vehicles, with an emphasis on livery equipment and other types of commercial vehicles used by small businesses. Since its inception, FFR has provided financing solutions to over 4,300 businesses nationwide while originating over $650 million in leases and loans during that period. The acquisition, Marlin’s second in recent years, is consistent with its stated strategy of augmenting organic growth with strategic acquisitions that extend the company’s existing equipment finance business into new and attractive markets.
“The acquisition of FFR, which originated more than $75 million in 2017, fits well within our vocational strategy for the transportation market by focusing on the financing of transportation equipment used by small businesses,” said Jeffrey Hilzinger, Marlin’s President and CEO. “In addition, approximately 70 percent of FFR’s origination volume is direct to end users, which is consistent with our emphasis on expanding Marlin’s direct origination capabilities. Overall, this acquisition allows us to significantly accelerate our growth in the commercial vehicle and titled transportation markets with a proven and successful team that has significant expertise in these markets.”
With the acquisition, FFR will become Marlin’s Commercial Vehicle Group, which will now be headed by David Reynolds, FFR’s Co-founder, President and CEO.
“On behalf of the team at FFR, I am very pleased to now be part of Marlin,” Reynolds said. “This transaction is extremely positive for both our employees and our customers by providing a great opportunity to continue to build on our track-record of success. As part of Marlin, we believe there is a tremendous opportunity to better support our customers while significantly accelerating Marlin’s growth in the commercial vehicle and titled transportation markets.”
The Alta Group initiated this transaction and served as exclusive financial advisor to FFR.