Triad, Oldest Manufactured Home Finance Company In U.S., Sold To Canadian Finance Behemoth ECN
ECN Capital has penned an agreement to acquire privately owned manufactured home lender Triad Financial Services, according to online reports. The announcement came last Wednesday, just one minute after the closing bell ended trading for the day. Established in 1959, Jacksonville, Florida-based Triad is the oldest manufactured home finance company in the United States.
ECN Capital Corp. (TSX:ECN), one of North America’s leading finance companies, will pay US$100 million (C$125 million) in cash for Triad. In addition, ECN Capital has agreed to an incentive compensation plan with senior management. The companies have based this plan on the achievement of a prescribed return on average equity (ROAE) over the next five years.
Triad is one of the few remaining independent sources originating loans to consumers for manufactured homes throughout the U.S. The company sources the originations through a national network of both manufactured home retailers and manufacturers. Triad then sells them to an established network of over 40 banks and credit unions. In addition to originating prime loans, the company also manages manufactured housing portfolios for third party owners.
Mutual Excitement About Sale Among Leaders at Triad and ECN
“ECN Capital is exactly the right partner for Triad and we are excited about the opportunities ahead for everyone that is a part of this Triad team,” said Don Glisson, Jr., Chairman and CEO of Triad Financial Services. The company grew into a multi-million dollar lender in the 1980s as a result of his efforts.
“Triad is a pioneer in the manufactured housing industry and a market leader with an incredible history, superior credit, proven growth, scalability and a robust partnership with U.S. banks and credit unions,” said Jim Nikopoulos, ECN Capital’s president. “We are excited to welcome this impressive business into the growing ECN Capital family of businesses and look forward to a long-term partnership with Don and his team,” Mr. Nikopoulos stated in addition.
The transaction includes employees, systems, intellectual property operations, offices, agreements, and other assets of Triad.
The transaction, expected to close in the first quarter of 2018, is subject to customary closing conditions, including regulatory approvals.