Wells Fargo to Purchase GMAC’s North American Factoring Portfolio
SAN FRANCISCO — March 24, 2010
Wells Fargo & Company (NYSE: WFC) announced today that Wells Fargo Bank, N.A. has entered into a definitive agreement to purchase substantially all of the North American factoring portfolio of the Commercial Services Division of GMAC Commercial Finance Group. The portfolio consists of approximately 150 small and middle-market clients that primarily serve the retail channel, representing approximately $4 billion in annual volume of factored receivables. Wells Fargo Bank will also acquire the client service application system currently used to manage these relationships. The portfolio and client service application system will become part of the Trade Capital division of Wells Fargo Capital Finance upon the closing of the transaction. Terms of the purchase were not disclosed.
“We are pleased to welcome these new clients and their customers to Wells Fargo,” said Stuart Brister, president of the Trade Capital division of Wells Fargo Capital Finance. “We look forward to being able to help them achieve success through the expertise we’ve gained in more than 50 years in factoring and through all the additional financial products and services Wells Fargo has to offer.”
“Wells Fargo is committed to helping small and middle-market businesses succeed,” said Bill Mayer, president of the Commercial & Retail Finance Group at Wells Fargo Capital Finance, of which the Trade Capital division is a part. “Being able to provide continuous service and financing for these clients during these uncertain times is another example of how we deliver on that commitment.”
Wells Fargo Bank, N.A. was advised by Wells Fargo Securities.
Wells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable and purchase order finance services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Bank, N.A.; Wells Fargo Business Credit, a division of Wells Fargo Bank, N.A.; Wells Fargo Credit, Inc.; Wells Fargo Distribution Finance, LLC; Wells Fargo Capital Finance, Inc.; Wells Fargo Capital Finance, LLC; Wells Fargo Retail Finance, LLC; Wells Fargo Retail Finance II, LLC; Wells Fargo Trade Capital, LLC; Wells Fargo Trade Capital Services, Inc.; Wachovia Bank, N.A.; Wachovia Capital Finance Corporation (Central); Wachovia Capital Finance Corporation (New England); and Wachovia Capital Finance Corporation (Western). For more information, visit wellsfargocapitalfinance.com.
Wells Fargo & Company is a diversified financial services company with $1.2 trillion in assets, providing banking, insurance, investments, mortgage and consumer finance through more than 10,000 stores and 12,000 ATMs and the Internet (wellsfargo.com) across North America and internationally.