Currently majority-owned by an affiliate of Flexpoint Ford based in Chicago, FinPac is the parent company of Financial Pacific Leasing and had total assets of $279m as of 30 April 2013, with tangible equity of $57m expected at close.
Upon completion of the acquisition, Financial Pacific Leasing will become a subsidiary of Umpqua Bank, and will report directly to Umpqua Bank executive vice president commercial banking Cort O’Haver.
Financial Pacific Holdings president and chief executive officer Paul Menzel said, "We’re confident this transaction will create value for both organizations, and look forward to leveraging our combined strengths for continued growth in the future."
Umpqua Bank president and CEO Ray Davis stated that the deal leverages excess capital, deploys more liquidity into significantly higher yielding assets, provides growth and further diversification, and increases profitability.
"Further, this transaction does not rule out the possibility of additional strategic acquisitions in the future, as we continue to deploy remaining excess capital for the benefit of our shareholders," Davis added.
The transaction has been approved by the board of directors of both companies, and is expected to conclude within one month.
Wachtell, Lipton, Rosen,, Katz and JP Morgan Securities acted as advisor to the board of directors of Umpqua Holdings, while Kirkland & Ellis served as advisor to Flexpoint Ford.
