EverBank Financial Corp (NYSE: EVER) (the “Company”) and General Electric Capital Corporation announced today that they have executed a definitive agreement under which EverBank, a subsidiary of the Company, will acquire Business Property Lending (“Business Property”), a business unit of GE Capital Real Estate, North America.
Business Property originates and services commercial real estate loans for essential use properties owned or leased by small and midsize businesses nationwide.
Under the terms of the agreement, EverBank will acquire the stock of Business Property Lending, Inc., which at the closing of the transaction will hold the origination and servicing platform for Business Property, for a purchase price of $2.51 billion in cash. No debt will be assumed in the acquisition. The transaction includes approximately $2.44 billion of performing commercial loans, the origination and servicing platforms, 108 employees and servicing rights on $3.1 billion of loans securitized by GE Capital. The transaction is expected to close in the fourth quarter of 2012, subject to regulatory approval and customary closing conditions.
“Today’s announcement represents a compelling strategic expansion into business property lending in key metropolitan areas where EverBank currently has significant lending, leasing and deposit customers,” commented Robert Clements, Chairman of the Board and Chief Executive Officer of the Company. “We believe this fully integrated, high quality franchise will accelerate EverBank’s strategic growth plans and will further enhance and diversify our robust, nationwide asset generation capabilities. In addition, the financial benefits of the transaction are attractive, resulting in near term accretion to EPS and ROE. ”Key metrics associated with the transaction include:
- Immediate low double digit EPS accretion
- ~100 bps ROE accretion
- Pro forma assets of $16.2 billion 1
- Pro forma Tier 1 common ratio of 11.8% 1
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