Wells Buys GMAC Factoring Unit
Wells Fargo Bank N.A., a division of Wells Fargo & Co., struck a deal to buy “substantially all” of GMAC Commercial Finance Corp.’s North American factoring portfolio of its Commercial Services Division for an undisclosed amount.
The portfolio contains about 150 small- and middle-market companies, primarily serving the retail channel, according to a statement from Wells Fargo. The factoring portfolio represents about $4 billion in annual volume of factored receivables, according to Wells Fargo. Once the deal closes, GMAC’s factoring portfolio will merge into the Trade Capital division of Wells Fargo Capital Finance.
“Wells Fargo is committed to helping small- and middle-market businesses succeed,” said Bill Mayer, president of the Commercial & Retail Finance Group at Wells Fargo Capital Finance, which oversees the Trade Capital division, in a statement. “Being able to provide continuous service and financing for these clients during these uncertain times is another example of how we deliver on that commitment.”
With $1.2 trillion in assets, Wells Fargo & Co. is a diversified financial-services company that offers banking, insurance, investments, mortgage and consumer finance services.—Alison A. Nieder
