Israel-based Bank Leumi has signed an agreement to sell a 15% stake in subsidiary Bank Leumi USA (BLUSA) to Endicott Capital Management and MSD Capital for $141m.
Founded in 1996 by Wayne Goldstein, Endicott Capital Management invests in financial institutions. MSD Capital is the private investment arm of Dell Technologies founder Michael Dell.
Go deeper with GlobalData
The deal values Leumi USA at $940m. The two strategic investors will bring the bank expertise in US financial services, the Israeli bank said.
After completion of the transaction, Wayne Goldstein, one of the two founding partners of Endicott, is likely to be named as a board member of both BLUSA and Bank Leumi le-Israel Corporation, the bank holding company of BLUSA.
Commenting on the deal, Leumi CEO Rakefet Russak-Aminoach said: “After examining several options, we decided to partner with Endicott and MSD Capital, which can bring significant advantages to BLUSA, including expansion of its customer base, greater access to the US capital markets, and the ability to leverage Endicott’s significant experience in the US financial markets.”
The transaction, which is yet to receive regulatory approval, will not have a material effect on its financial results, Bank Leumi said.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
