Purchase to add nearly $1 billion of commercial
leases and expands Huntington investment in Michigan
Huntington Bancshares Inc. (NASDAQ: HBAN; www.huntington.com)
today announced the signing of a definitive agreement for
Huntington National Bank to purchase Bloomfield Hills,
Michigan-based Macquarie Equipment Finance, Inc. (MEF-US). With
approximately $500 million of annual originations, MEF-US is the
largest standalone, vendor independent provider of specialized
technology financing with customer-centric asset management
services in the United States.
Huntington will acquire Macquarie Equipment Finance’s U.S.
business from its ultimate parent company, Sydney, Australia-based
Macquarie Group Ltd. Under the terms of the agreement, Huntington
will acquire approximately $900 million of assets and assume
approximately $630 million of debt, securitizations, and other
liabilities. The acquisition is expected to be accretive to
Huntington’s earnings in the first year and is anticipated to be
completed by March 31, 2015.
“The acquisition of Macquarie Equipment Finance is an important
expansion of Huntington’s current capabilities, adding a national
technology and healthcare platform to help drive our ongoing
growth,” said Stephen D. Steinour, Huntington Bancshares chairman,
president and CEO. “We will be able to now provide broader credit
solutions helping corporate and middle market businesses to grow.
Importantly, we will also extend our asset finance capabilities to
small businesses throughout our region as a result of the
acquisition.”
The transition will be seamless for customers who will continue
to interface within the converting Macquarie Equipment Finance
workforce, under the same executive management team leadership. The
acquisition will add more than 165 jobs to Huntington’s colleague
base.
“Huntington’s proven track record as a leading equipment finance
solutions provider will integrate well with Macquarie Equipment
Finance’s similar high standards of service,” said Rick Remiker,
commercial banking director for Huntington and the company’s senior
executive overseeing the equipment finance function. “We have
organically grown Huntington Equipment Finance by more than 200
percent over the past five years. We look forward to further growth
opportunities in partnership with our new executive leaders
following successful completion of the acquisition.”
“We are very enthusiastic to join Huntington and are excited
about what this acquisition means for our customers and partners,”
said Gregory Goldstein, president of Macquarie Equipment
Finance.
Huntington’s purchase of Macquarie Equipment Finance is the
company’s latest investment within Michigan, following the
September completion of a 24-branch, $750 million deposit
acquisition from Bank of America. Huntington is a longtime partner
to the Michigan public sector with a series of partnerships with
the state of Michigan and Michigan Economic Development Corporation
(MEDC) contributing in excess of $2 billion in statewide corporate
lending, and engineering statewide microlending opportunities via
the Pure Michigan Micro Lending Initiative in Detroit and further
pending in additional Michigan communities.
Huntington is also in the process of successfully concluding a
$100 million Michigan affordable housing investment statewide
commitment, and continues to grow in Michigan by adding branches
within Meijer stores. As a Michigan business lender, Huntington
maintains the No. 1 ranking as the top Small Business
Administration (SBA) lender in the state, currently making more SBA
7(a) loans in Michigan than all other lenders combined.
Huntington was advised by Guggenheim Securities and Wachtell,
Lipton, Rosen & Katz. Macquarie Group was advised by Macquarie
Capital, Mayer Brown LLP and KPMG LLP.
About Huntington
Huntington Bancshares Incorporated is a $66 billion asset
regional bank holding company headquartered in Columbus, Ohio. The
Huntington National Bank, founded in 1866, and its affiliates
provide full-service commercial, small business, and consumer
banking services; mortgage banking services; treasury management
and foreign exchange services; equipment leasing; wealth and
investment management services; trust services; brokerage services;
customized insurance brokerage and service programs; and other
financial products and services. The principal markets for these
services are Huntington’s six-state retail banking franchise: Ohio,
Michigan, Pennsylvania, Indiana, West Virginia, and Kentucky. The
primary distribution channels include a banking network of more
than 700 traditional branches and convenience branches located in
grocery stores and retirement centers, and through an array of
alternative distribution channels including internet and mobile
banking, telephone banking, and more than 1,500 ATMs. Through
automotive dealership relationships within its six-state retail
banking franchise area and selected other Midwest and Northeast
states, Huntington also provides commercial banking services to the
automotive dealers and retail automobile financing for dealer
customers.
About Macquarie Equipment Finance
Macquarie Equipment Finance, Inc., a member of Macquarie Group,
is a leading global provider of specialized financing and asset
management solutions for enterprises, technology manufacturers and
suppliers worldwide with capabilities to serve the needs of major
multinational organizations through small and midsize
businesses.
Macquarie Group (Macquarie) is a global provider of banking,
financial, advisory, investment and funds management services.
Founded in 1969, Macquarie operates in more than 70 office
locations in 28 countries and employs more than 14,100 people.
Assets under management total $372 billion as of September 30,
2014. For more information, visit www.macquarie.com/mef.
Important Information for Investors and Shareholders
Forward-looking
Statement
This document contains certain forward-looking statements,
including certain plans, expectations, goals, projections, and
statements, which are subject to numerous assumptions, risks, and
uncertainties. Forward-looking statements may be identified by
words such as expect, anticipate, believe, intend, estimate, plan,
target, goal, or similar expressions, or future or conditional
verbs such as will, may, might, should, would, could, or similar
variations.
While there is no assurance that any list of risks and
uncertainties or risk factors is complete, below are certain
factors which could cause actual results to differ materially from
those contained or implied in the forward-looking statements: (1)
worsening of credit quality performance due to a number of factors
such as the underlying value of collateral that could prove less
valuable than otherwise assumed and assumed cash flows may be worse
than expected; (2) changes in general economic, political, or
industry conditions; uncertainty in U.S. fiscal and monetary
policy, including the interest rate policies of the Federal Reserve
Board; volatility and disruptions in global capital and credit
markets; (3) movements in interest rates; (4) competitive pressures
on product pricing and services; (5) success, impact, and timing of
our business strategies, including market acceptance of any new
products or services implementing our “Fair Play” banking
philosophy; (6) changes in accounting policies and principles and
the accuracy of our assumptions and estimates used to prepare our
financial statements; (7) extended disruption of vital
infrastructure; (8) the final outcome of significant litigation;
(9) the nature, extent, timing, and results of governmental
actions, examinations, reviews, reforms, regulations, and
interpretations, including those related to the Dodd-Frank Wall
Street Reform and Consumer Protection Act and the Basel III
regulatory capital reforms, as well as those involving the OCC,
Federal Reserve, FDIC, and CFPB; and (10) the outcome of judicial
and regulatory decisions regarding practices in the residential
mortgage industry, including among other things the processes
followed for foreclosing residential mortgages. Additional factors
that could cause results to differ materially from those described
above can be found in Huntington’s 2014 Annual Report on Form 10-K,
and documents subsequently filed by Huntington with the Securities
and Exchange Commission. All forward-looking statements included in
this document are based on information available at the time of the
release. Huntington assumes no obligation to update any
forward-looking statement.
Huntington Bancshares Inc.Investors:Mark Muth,
614-480-4720mark.muth@huntington.comorMedia:Maureen Brown,
614-480-5512maureen.brown@huntington.com
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