- ECN Capital ( OTCPK:ECNCF ) said Wednesday it will sell its unit ECN Kessler Holdco, through which it operates the Kessler Group business, to private equity firm Stone Point Capital for $210M.
- Net proceeds will be used to pay down debt and accelerate its tuck-in acquisition strategy in its prime marine and RV financing business.
- "ECNCF intends to concentrate its future investments in its manufactured housing and marine and RV financing businesses," said CEO Steven Hudson.
- The sale is expected to close late in Q3 or early in Q4.
- Based on expected impact of the Kessler Group sale on ECNCF's 2022 operating results, ECNCF's revised its 2022 adj. EPS estimate to $0.25-$0.281 vs. consensus estimate of $0.40.
- ECNCF reaffirmed its 2023 adj. EPS guidance of $0.36-$0.421 vs. consensus estimate of $0.54.
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ECN Capital to sell Kessler Group to Stone Point Capital for $210M