On June 8th, Birmingham’s own Regions Bank announced its plans to acquire the Salt Lake City-based EnerBank USA for a whopping $960 million (with a “M”). This is definitely a “big” deal, Birmingham! Read on for all the details.
The $960M deal isn’t Regions Bank’s First Rodeo
Based out of Salt Lake City, Utah, EnerBank USA is a home improvement lender that currently serves over one million homeowners through a network of 10,000+ contractors across the country. Now, Regions Bank is planning to acquire the company later this year.
The deal is the latest in a series of acquisitions by the Birmingham-based banking giant. Over the past several years, Regions Bank has acquired smaller businesses in an effort to provide additional services for their customers.
For instance, Regions Bank acquired Ascentium Capital, a Texas-based business equipment financing and leasing company, in 2020. In 2019, Regions Bank acquired the local Highland Associates Inc., an investment firm that managed roughly $26B in client assets at the time.
“We are thrilled the EnerBank team will be joining Regions as we accelerate our strategy to serve as the premier lender to homeowners by offering more innovative financial solutions that prioritize ease of use and deliver a positive customer experience. 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.”Scott Peters, Regions Bank, Senior Executive Vice President & Head of Consumer Banking Group
Here’s What This Means for You
Just like Ascentium Capital and Highland Associates Inc., Regions Bank’s acquisition of EnerBank USA is a strategic move to add even more value to their services. EnerBank USA brings nearly two decades worth of experience in helping contractors and homeowners put together cost-effective financial solutions for home improvement projects.
Regions Bank plans to complete the acquisition of EnerBank USA by the fourth quarter of 2021. Once the deal is finished, the team from EnerBank will maintain its presence in Salt Lake City.