Regions Financial Corporation’s RF subsidiary, Regions Bank, completed its proposed acquisition of equipment finance lender, Ascentium Capital LLC, from Warburg Pincus. Notably, the company had announced the acquisition this February, marching ahead with its efforts to expand offerings for small-business customers. It also complements Regions Financial’s established equipment finance and commercial banking businesses that serve the middle-market and large companies.
Financial terms of the transaction have not been disclosed yet.
Headquartered in Kingwood, TX, Ascentium Capital is the largest independent equipment finance lender in the United States. It offers comprehensive financing solutions through more than 460 employees. It had approximately $2 billion in loans and leases, and $1.5 billion in originations at the end of 2019.
Since inception, Ascentium Capital, with its management team and proprietary underwriting technology platform, has delivered strong performance throughout credit cycles.
"We are pleased to welcome Ascentium Capital teammates and small business customers to Regions," said Ronnie Smith, senior executive vice president and head of the Regions Corporate Banking Group. "The strong combined team from Regions and Ascentium is committed to providing capital, flexibility and financial guidance to support and strengthen the small businesses that are so crucial to the economic health of the communities we serve," noted Smith.
Notably, in order to boost its diversified business, Regions Financial has been on an acquisition spree for the past few years. As the company remains committed toward diversifying its revenue streams, we believe such acquisitions support its growth prospects.
Apart from this, it continues to take actions with respect to the company’s Simplify and Grow initiative, including streamlining its structure and refining the branch network, while making investments in new technologies, delivery channels and other growth drivers.
In the past year, this Zacks Rank #4 (Sell) stock has lost 44.2% compared with the 36.4% decline of the industry it belongs to.
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Regions Financial Corporation (RF): Free Stock Analysis Report
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