Issue link: https://read.dmtmag.com/i/657286
FINANCIAL Wells Fargo & Company announced March 1 that it has completed the purchase of the North American portions of GE Capital's Commercial Distribution Finance and Ven- dor Finance businesses as well as a portion of its Corporate Finance business, totaling $27.4 billion of assets, including about $24 billion of loans. The remaining international segment of the transaction is expected to close later this year. The total acquisition includes assets of approximately $31 billion as well as businesses employing approximately 2,800 team members. "The completion of this transaction strengthens our capabilities and deepens our customer relationships in key com- mercial lending markets across the U.S. and Canada," said Tim Sloan, Wells Far- go's president, chief operating officer and head of wholesale banking. "The businesses acquired from GE Capital are industry lead- ers with proven business models and capa- bilities. As a result of this acquisition, we are adding a set of complementary busi- nesses, long-term customer relationships and exceptionally talented and experienced teams that position Wells Fargo as a market leader in these important product areas." As previously announced, the businesses acquired from GE Capital include: COMMERCIAL DISTRIBUTION FINANCE GE Capital's Commercial Distribution Finance (CDF) business is a market leader in providing customized inventory financing to fund the flow of finished durable goods from manufac- turers to dealers. Through industry expertise and integrated technologies, CDF helps manu- facturers and dealers across the U.S. and Can- ada improve cash flow, reduce risk and grow sales. CDF's inventory finance products and deep customer relationships greatly comple- ment and expand the existing asset-based lend- ing product offerings in Wells Fargo's Capital Finance division. Commercial Distribution Finance adopted the tradename Wells Fargo Commercial Distribution Finance. VENDOR FINANCE GE Capital's Vendor Finance business pro- vides vendor and dealer financing programs for manufacturers and dealers of all sizes, and their customers, across the U.S. and Canada, from Fortune 500 companies looking to offer private label financing to independent opera- tions looking to manage cash flow. The busi- ness drives vendor sales growth by supporting dealers with inventory financing and by provid- ing leases and loans to commercial end-user customers. As a leading provider of technology- enabled white label captive program and chan- nel financing solutions, GE Capital's Vendor Finance business will significantly expand Wells Fargo's current capabilities within its Equipment Finance business. Vendor Finance adopted the tradename Wells Fargo Vendor Financial Services. CORPORATE FINANCE GE Capital's Corporate Finance business (also known as Direct Lending and Leasing) pro- vides senior secured asset-based loans as well as equipment leases and loans to middle-market customers. Wells Fargo purchased a portion of the business, which is being integrated into 8 • April 4, 2016 • Powersports Business www.PowersportsBusiness.com Wells Fargo completes acquisition of CDF STOCK MARKET WATCH DEALER FINANCIAL SNAPSHOT FEBRUARY 2016 Same Store Sales results from 1,525 CDK Global Recreation powersports dealerships in the U.S. increased 5.9 percent overall in February 2016 in comparison to February 2015. The West was the only region to decrease overall, down 3.2 percent. The Midwest saw the largest increase overall with a 17 percent increase, and the South was second with a 9.2 percent increase. The Northwest, Midwest and South all experienced increases in all four categories. PARTS SALES Parts sales saw 852 dealers up and 673 down. SERVICE SALES In service, 966 dealers were up, while 515 were down. MAJOR UNIT SALES 786 dealers were up, and 580 were down. NORTHWEST 1.2% Parts Department 4.5% Service Department 3.6% Major Units 3.2% Overall MIDWEST 6.5% Parts Department 18.2% Service Department 19.9% Major Units 17.0% Overall NORTHEAST -15.2% Parts Department 21.3% Service Department 3.5% Major Units 2.2% Overall SOUTH 5.9% Parts Department 19.0% Service Department 7.1% Major Units 9.2% Overall WEST -1.2% Parts Department 3.2% Service Department -4.6% Major Units -3.2% Overall UNITED STATES 0.2% Parts Department 13.1% Service Department 5.4% Major Units 5.9% Overall Stock Price Percent Company Ticker 3/11/16 Change Universal Technical Institute UTI $4.66 31.6% Harley-Davidson, Inc. HOG $48.93 16.5% Polaris Industries, Inc. PII $97.85 14.0% TCF Financial Corporation TCB $12.54 13.5% Assurant, Inc. AIZ $77.60 10.3% MarineMax, Inc. HZO $18.05 10.2% ARI Network Services, Inc. ARIS $4.56 9.1% Carlisle Companies CSL $95.80 9.0% Speedway Motorsports, Inc. TRK $18.38 -0.8% Spy Inc. XSPY $0.08 -32.9% POWERSPORTS BUSINESS WINNERS AND LOSERS See Wells Fargo, Page 10 MARKET WATCH Change 3/11/16 from 2/19 % Change Powersports Business Index 241.906 24.20 11.11% Dow Jones Index 149.718 7.14 5.01% S&P 500 Index 137.634 7.11 5.44% Source: Wells Fargo Securities LLC 0 50 100 150 200 250 300 350 7/24/15 8/14/15 9/11/15 10/16/15 11/6/15 12/4/15 12/31/15 1/22/16 2/19/16 3/11/16 PSB INDEX VALUE DOW JONES INDEXED S&P 500 INDEXED STOCK MARKET ACTIVITY FOR MORE ON THE SAME STORE SALES DATA For more information on this report and other industry data, contact: cdkrecreation.com/dataservices "The businesses acquired from GE Capital are industry leaders with proven business models and capabilities." Tim Sloan, president, chief operating officer and head of wholesale banking at Wells Fargo