Purchase to be accretive the first year with
nearly $1 billion of commercial leases
Huntington Bancshares Inc. (NASDAQ: HBAN; www.huntington.com)
last night completed its acquisition of Michigan-based Macquarie
Equipment Finance, Inc. (MEF-US) from its parent company, Sydney,
Australia-based Macquarie Group Ltd. The acquisition is expected to
be accretive to Huntington’s earnings in 2015.
MEF-US is the largest standalone, independent provider of
specialized technology financing in North America with
approximately $500 million of annual originations. With today’s
announcement, MEF-US will begin transitioning to operate under the
name Huntington Technology Finance. Based outside of Detroit,
MEF-US is the sixth major investment Huntington has made in
Michigan in the past five years.
“The acquisition gives Huntington the ability to expand its
already successful equipment financing business nationally and
regionally,” said Steve Steinour, chairman, president and CEO of
Huntington Bancshares. “With the acquisition we can offer
additional leasing options for our corporate, middle market and
small business customers in order to help them expand their
companies. It also represents another Huntington investment in
Michigan, where we are growing our presence and employee base
because we believe in the future of the state.”
The transition will be seamless for customers who will continue
to interface with the converting MEF-US workforce, under the
ongoing leadership of Gregory Goldstein, formerly president of
MEF-Global. The acquisition will add more than 165 jobs to
Huntington’s colleague base.
“We have organically grown Huntington Equipment Finance by more
than 200 percent over the past five years,” said Rick Remiker,
Huntington commercial banking director. “With the addition of the
MEF-US team, Huntington will have even greater expertise especially
in the fast growing health care and technology markets that many of
our customers and potential customers need in order to stay ahead
of the ever-changing technology curve.”
Under the terms of the agreement, Huntington acquired
approximately $900 million of assets and assumed approximately $630
million of debt, securitizations, and other liabilities.
Earlier this month, Huntington announced the opening of 43
additional in-store branches in Michigan that along with the MEF-US
acquisition will bring the number of Huntington employees in the
state to 2,300. Huntington’s investment in Michigan also
includes:
- In 2011 Huntington made $2 billion in
lending available to Michigan commercial and small businesses,
working with the Michigan Economic Development Corporation
(MEDC).
- In 2012 Huntington announced a $100
million statewide commitment to affordable housing investment.
- In 2013 Huntington helped launch the
Pure Michigan Micro Lending Initiative.
- In 2014 Huntington added 22 branch
locations expanding into new markets in Mid- and East Michigan
including Saginaw, Bay City, Midland and Monroe.
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.InvestorsMark Muth,
614-480-4720mark.muth@huntington.comorMediaMaureen Brown,
614-480-5512maureen.brown@huntington.com
Huntington Bancshares (NASDAQ:HBAN)
Historical Stock Chart
From Feb 2024 to Mar 2024
Huntington Bancshares (NASDAQ:HBAN)
Historical Stock Chart
From Mar 2023 to Mar 2024