Accord Financial Divests US Equipment Leasing Division, Refocuses on Core Businesses

Accord Financial Corp., a leading North American commercial finance company, has announced the successful sale of the portfolio assets of its US equipment leasing division, Accord Equipment Finance (AEF). The transaction, valued at $63.2 million (US$46.8 million), marks a strategic move by Accord to refocus its efforts on its core business lines and create shareholder value.

Unlocking Value, Streamlining Operations

The sale of AEF's portfolio assets to a prominent US-based factor and finance company represents a significant milestone for Accord. By divesting this non-core division, the company is able to redirect its resources and capital towards its core strengths in receivables finance, asset-based lending, and factoring. This strategic move aligns with Accord's broader initiative to refocus on its North American market position and expand its presence in the Canadian small business finance sector, which has shown strong growth in recent years.

Maximizing Shareholder Value

The transaction is expected to have a positive impact on Accord's tangible equity, with net proceeds being used to pay down the company's primary banking facility. Additionally, Accord has the opportunity to earn an additional US$400,000 based on the portfolio's credit performance through December 31, 2025, further enhancing the financial benefits of the sale.

Seamless Transition for Clients

As part of the transaction, the AEF team of professionals will be joining the acquirer, ensuring a smooth transition for the company's valued clients. This move not only preserves the expertise and relationships built within the AEF division but also allows the acquirer to leverage this talent to expand its own equipment leasing capabilities.

Refocusing on Core Strengths

The divestment of the AEF division aligns with Accord's strategic initiative to refocus on its core business lines. Since its founding in 1978, the company has established a strong presence in North America's receivables finance market, including asset-based lending and factoring. By streamlining its operations and reallocating capital, Accord is positioning itself to compete and grow in these core areas, which are poised for continued success.

Positioning for Future Growth

Looking ahead, Accord's President and CEO, Simon Hitzig, has expressed the company's commitment to several balance sheet initiatives that will support renewed growth in 2025. With this significant transaction now complete, Accord is well-positioned to capitalize on emerging opportunities and further strengthen its position as a leading commercial finance provider in North America.The Hovde Group, a US-based investment banking firm specializing in the financial services sector, served as the exclusive advisor to Accord throughout this strategic divestment process.