Regions Bank has agreed to buy Salt Lake City, Utah-based EnerBank USA for $960m to add point-of-sale home improvement financing capabilities.
EnerBank will retain its headquarters in Salt Lake City after the acquisition, which awaits regulatory nod.
Regions will retain the employees of home improvement lender EnerBank. As part of Regions Bank Consumer Banking Group, these employees will report to the unit’s head Scott Peters.
The deal is slated to complete in the final quarter of this year.
Peters noted: “We have thoughtfully evaluated the home improvement point-of-sale lending space for a number of years, and we believe this is the right partner at the right time to deliver on our vision.
“EnerBank’s platform and skilled financial professionals, combined with the reach and experience of Regions’ Consumer Banking teams, will help us deepen relationships with clients while reaching new customers with convenient home improvement lending options.”
A wholly-owned subsidiary of CMS Energy, EnerBank supports homeowners as well as contractors with digital financing solutions.
The firm has a workforce of 450. It has additional offices in Provo, Utah, and Mooresville, North Carolina, apart from its Salt Lake City base.
Meanwhile, Regions Bank, a subsidiary of Regions Financial, has more than 1,300 banking offices.
Last year, Regions Bank snapped up equipment finance lender Ascentium Capital while in 2019 it bought institutional investment firm Highland Associates.
“EnerBank USA serves homeowners and home improvement contractors in all 50 states, including Regions Bank’s markets across the Southeast, Texas, and the Midwest. By joining the team at Regions, we have a tremendous opportunity to connect more clients with custom-tailored home improvement lending options,” said Charlie Knadler, president and CEO of EnerBank USA.
CMS Energy president and CEO also welcomed the deal, said that it will put it on track to offer 6-8% long-term adjusted EPS growth for investors.
EnerBank has catered to more than one million homeowners and over 10,000 contractors via mobile, online, and phone-based point-of-sale lending options.