On October 25, 2017 Triad Financial Services, Inc. (Triad) officially entered into a definitive agreement with ECN Capital to acquire Triad Financial Services. ECN Capital is one of North America’s leading finance companies with assets of approximately $5.0 billion dollars. The agreement brings a new source of significant financial resources to the company which will allow more growth and opportunities for Triad and its partners. ECN Capital Corp. (TSX: ECN) under the terms of the agreement will pay US $100 million (C$125 million) in cash for Triad. In addition, ECN Capital has agreed to an incentive compensation plan with senior management that will be based on the achievement of a prescribed return on average equity (ROAE) over the next five years. The transaction, which is expected to close in the first quarter of 2018, is subject to customary closing conditions, including regulatory approvals.
“Triad is a pioneer in the manufactured housing industry and a market leader with an incredible history, superior credit, proven growth, scalability and a robust partnership with U.S. banks and credit unions,” said Jim Nikopoulos, ECN Capital’s President. “We are excited to welcome this impressive business into the growing ECN Capital family of businesses and look forward to a long-term partnership with Don and his team,” added Mr. Nikopoulos.
ECN Capital operates in three verticals: Home Improvement Finance, Commercial & Vendor Finance and Rail Finance. ECN Capital also owns and manages aviation finance assets which are in wind-down following the decision to discontinue originations of such assets onto its balance sheet and to sell, manage to maturity and/or transition to an aviation fund, such assets.
“ECN Capital is exactly the right partner for Triad and we are excited about the growth opportunities ahead for everyone that is a part of the Triad team. With this agreement comes a significant amount of opportunities as well as resources,” said Don Glisson, Jr., Chairman and CEO of Triad.