PNC Financial Services Group Inc.’s announcement it would acquire an equipment finance portfolio indicates that bank buyers continue to be interested in the space while nonbank lenders increasingly find it difficult to compete.
PNC agreed to acquire the U.S.-based equipment finance business from Toronto-based ECN Capital Corp. for about $1.25 billion. The deal includes a $1.1 billion portfolio of construction, transportation, industrial, franchise and technology loans and leases. It is expected to be modestly accretive to earnings.
