Huntington to Buy Macquarie Equipment Finance Inc.
COLUMBUS, Ohio- – Huntington Bancshares Inc., parent of Huntington Bank, announced today that it has signed a definitive agreement for the bank to purchase Macquarie Equipment Finance Inc., based in Detroit.
Macquarie Equipment Finance is a subsidiary of the Australia-based Macquarie Group Ltd. The subsidiary is the “largest stand-alone vendor independent provider of specialized-technology financing with customer-centric asset management services in the United States,” the press release said.
The purchase price will be disclosed when the transaction closes, a bank spokeswoman said, on or before March 31.
Macquarie Equipment has some $500 million in annual originations, the release said. Under terms of the agreement Huntington will acquire roughly $900 million in assets and assume some $630 million in debt, securitizations and other liabilities.
Huntington projects the acquisition will add nearly $1 billion in commercial leases to its leasing portfolio and expand its presence in Michigan. The bank’s senior executive for equipment finance, Rick Remiker, says Huntington Equipment Finance has grown “organically by more than 200% over the past five years.”
Huntington expects the acquisition to be accretive to its earnings the first year, the company said. The acquisition will add 165 employees to the workforce of the bank.
Said Stephen D. Steinour, chairman, president and CEO of Huntington Bancshares, in a prepared statement, “The acquisition of Macquarie Equipment Finance is an important expansion of Huntington’s capabilities [by] adding a national technology and health-care platform to drive our growth. We will be able to now provide broader credit solutions helping corporate and middle-market businesses to grow. We will also extend our asset finance capabilities to small businesses throughout our region as a result of the acquisition.”
The announced acquisition follows Huntington’s acquisition last September of 24 branches with $750 million in deposits within Michigan from Bank of America.
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