WELLS FARGO AGREES TO ACQUIRE CHARTER FINANCIAL
SAN FRANCISCO — June 6, 2000
Wells Fargo & Company (NYSE: WFC) and Charter Financial Inc., one of the nation’s largest independent leasing companies, have signed a definitive agreement for Wells Fargo to acquire Charter Financial Inc.
Terms of the transaction, expected to be completed in the second half of this year, were not disclosed. After the acquisition, Charter is expected to become part of Minneapolis-based Wells Fargo Equipment Finance, Inc. which has $2.85 billion in receivables, 200 employees, 12,500 customers, does business in 49 states and is the nation’s tenth largest leasing company among banks.
Charter Financial, headquartered in New York City, is a specialty finance and leasing company that provides mid-market financing to clients in targeted industries throughout the U.S. and Canada. It has receivables under management of $950 million and100 employees. It provides medium-term, fixed rate, full payout leases and equipment financing for 4,000 commercial customers across North America.
The company originates equipment financing transactions in the U.S. on a direct sales basis through 10 offices and in Canada through a network of eight exclusive small independent leasing companies. It originated $383 million in leases last year.
"As we grow our business we believe that partnering with a larger diversified company can make it possible for us to add significant financial products to better serve our customers and satisfy all their financial needs, " said Charter Financial Chairman Alan Fischer. "Wells Fargo Equipment Finance has a track record of success and shares our commitment to long-term customer relationships and strong credit quality."
"Charter Financial has an outstanding management team and will bring us a nationwide customer base in media, telecommunications, plastics and packaging," said Jim Renner, president of Wells Fargo Equipment Finance. "It also will give us a strong foothold in Canada where it targets middle market clients in construction, transportation, logging and forestry industries."
Wells Fargo & Company is a $222 billion financial services company providing banking, insurance, investments, mortgage and consumer finance from more than 5,300 stores in all 50 states and Canada, the Internet (wellsfargo.com) and other distribution channels across North America and elsewhere internationally.