Simply Group Completes $71 Million Acquisition of Home Capital Group’s Point-of-Sale Retail Lending Portfolio
Source – https://www.businesswire.com/news/home/20200903005822/en/
TORONTO–(BUSINESS WIRE)–Simply Green Home Services Inc., parent corporation of a group of companies known as “Simply Group” and owner of one of Canada’s fastest growing home energy solution and consumer lending businesses, along with Home Capital Group Inc. (“Home Capital”) (TSX:HCG), announced today that Simply Group Financial Corp., a member of Simply Group, has acquired the point-of-sale component of Home Capital’s retail lending portfolio in a transaction valued at $71 million.
“We are pleased that our customers and merchants are moving to the Simply Group team with their focus on delivering value in consumer finance. We are confident that we are leaving them in good hands.”Tweet this
The acquisition includes Home Capital’s home improvement and bulk food loan businesses, previously carried on through its subsidiary, Home Trust Company, as well as all related merchant relationships.
The sale is aligned with Home Capital’s strategy to exit non-core activities, while Simply Group looks to further fuel its growth in the consumer finance business by diversifying its product and consumer lending offerings beyond home energy solutions to home improvement generally.
“This is a strategic acquisition for Simply Group that perfectly complements our existing business. It will help us to expand and improve our product offerings to both merchants and consumers, offering a one-stop source for financing of home energy, home comfort and home improvement projects and products,” said Lawrence Krimker, Founder and CEO of Simply Group. “Home Trust is a strong and trusted brand, and we look forward to leveraging this acquisition to bring long-term value for customers, retail partners and investors.”
“We concluded in December 2019 that the point-of-sale retail lending business was non-core,” said Yousry Bissada, Chief Executive Officer of Home Capital. “We are pleased that our customers and merchants are moving to the Simply Group team with their focus on delivering value in consumer finance. We are confident that we are leaving them in good hands.”
About Simply Group:
With more than $750 million in assets acquired, Simply Group (mysimplygroup.com) provides consumers and businesses with financing solutions that afford them greater flexibility not only to achieve improved energy-efficiency, but also to modernize their residential, commercial and industrial properties and projects. Simply Group knows that its people are its greatest asset and is proud to be Great Place to Work-Certified since 2016. In 2020, Simply Group was named Best Business of the Year by the Canadian SME National Business Awards.
About Home Capital:
Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through a direct-to-consumer brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, we have offices in Ontario, Alberta, British Columbia, Nova Scotia, Quebec and Manitoba.