The transaction is expected to close in the first half of 2017 and is subject to regulatory approvals and other customary closing conditions. Terms of the transaction were not disclosed. Citi does not expect the financial terms of the transaction to be material to its earnings.
“CitiFinancial Canada is a leading community-based lender in Canada,” said Francesco Vanni d’Archirafi, CEO of Citi Holdings. “We are especially pleased that the entire business, including all 1,300 employees, is included in the transaction.”
With $1.9bn(CAD $2.5bn) of assets and over a quarter of a million active customers, CitiFinancial Canada operates 217 branches across Canada. In addition to personal lending and mortgage solutions, CitiFinancial Canada provides retail financing programs to many of Canada's top retailers.
“CitiFinancial Canada is a market leader with solid growth potential, and we look forward to collaborating with their outstanding management team to extend the business’s reach in underserved consumer markets in Canada,” said Thomas Harding, Vice President of J.C. Flowers. “We believe J.C. Flowers’ vast experience with financial services around the globe will help enhance CitiFinancial Canada’s products and services.”
“Värde is excited by the opportunity this transaction provides for CitiFinancial Canada in the dynamic consumer finance market in Canada. It is a natural extension of our deep expertise globally in specialty finance,” said Chris Giles, Senior Managing Director for Värde.
“CitiFinancial Canada is a leading personal lender and retail financer in the country, and we see a great opportunity to grow the business” said Aneek Mamik, Senior Managing Director and Head of North American Specialty Finance for Värde. "We are excited to add a great business to our specialty finance portfolio and look forward to partnering with the strong and experienced team at CitiFinancial.”
“With a local history dating back to 1919, Citi’s Canadian franchise remains an important part of our global footprint,” said John Hastings, CEO of Citibank Canada. “We look forward to continuing to serve our clients in our core institutional and consumer businesses.”
Citi’s Institutional Clients Group advised Citi on this transaction. Torys LLP acted as legal advisor for Citi. National Bank Financial Inc. was lead financial advisor to J.C. Flowers and Värde. Barclays Capital Inc. also served as financial advisor to the buyers. Kirkland & Ellis LLP and Stikeman Elliott LLP served as legal advisors to the buyers.
