Truist Financial Corp. (NYSE: TFC) has, through its wholly owned bank subsidiary, Truist Bank, signed a definitive agreement to acquire Service Finance Co. LLC, a national provider of point-of-sale financing services for the home improvement industry, from ECN Capital Corp. for $2 billion.
Truist’s current POS lending business includes Sheffield Financial, a POS lender in the power equipment, power sports, trailer and other consumer products segments.
“The acquisition of Service Finance expands the scale and capabilities of our wholesale payments businesses, enabling Truist to deliver innovative financing solutions to Service Finance’s nationwide network of dealers and serve homeowners across the country,” said Mike Maguire, head of national consumer finance and Payments at Truist. “This acquisition significantly strengthens Truist’s leadership position in the rapidly growing POS industry, and we’re excited to partner with Mark Berch and the entire Service Finance team.”
“Service Finance’s client-centric model, coupled with Truist’s financial strength and commitment to POS lending, perfectly position us to continue to provide distinctive, secure and successful client experiences,” said Jeff McKay, head of Truist’s POS lending unit. “Just like Sheffield, Service Finance partners with leading brand names in their industry and has earned a reputation for unparalleled client service and delivering innovative solutions.”
“As a former home improvement contractor, I know how important it is to help contractors and their customers get access to convenient and attractive financing so our end-customers can spend more time enjoying the moments that matter, in the place that matters the most—their homes,” said Mark Berch, president and founder of Service Finance. “This is a dynamic market with tremendous potential, and joining Truist only improves our outlook for growth.”
Davis Polk & Wardwell LLP served as legal counsel, and Truist Securities served as financial advisor to Truist. Cravath, Swain & Moore LLP served as legal counsel to ECN Capital Corp.