TD Bank Group buys Chrysler Financial for $6.3 billion

Article by Christian Andrei, on December 24, 2010

Cerberus Capital Management, L.P. and TD Bank Group and Cerberus Capital Management, L.P. recently announced an agreement under which Chrysler Financial will be sold to TD for cash consideration of around $6.3 billion.

TD has no intent to issue common equity in connection with this transaction. The purchase is comprised of net assets of $5.9 billion and around $400 million in goodwill.

Under the agreement, TD Bank, America’s Most Convenient Bank, a wholly-owned subsidiary of TD, will acquire Chrysler Financial in the U.S. and TD will acquire Chrysler Financial in Canada.

The acquisition will give TD all of Chrysler Financial’s technology and processes as well as its existing portfolio of retail assets on both sides of the border.

Combined with TD's current platforms in Canada and the U.S., the business will be positioned as a top 5 bank-owned auto lender in North America, following the transaction. Ed Clark, TD's Group President and CEO said the transaction represents a unique opportunity to purchase a great organic growth platform at an attractive price. 

"This transaction represents a unique opportunity to purchase a great organic growth platform at an attractive price," said Ed Clark, Group President and CEO, TD. "Chrysler Financial is a well-run business with the capacity for significantly higher returns over the next several years. This acquisition will allow us to leverage our lending expertise and financial strength to expand our presence in a large North American market with tremendous potential upside".

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

As BMW continues to pursue its plans for the coming years, President-elect Donald Trump gave out a warning to car manufacturers to prevent them from exporting their cars to the...
by - January 17, 2017
Audi recently unveiled its Q8 full-size coupe SUV concept at the 2017 North American International Auto Show. Bearing the traditional functionality of an SUV and the sexy and sporty styling...
by - January 17, 2017
The highlight of this year’s Consumer Electronics Show may be based on some of these keywords---connectivity, integration and partnership. Just like in the previous year, you’ve probably heard and read...
by - January 16, 2017
Less than three weeks to go and the Super Bowl LI – one of the most awaited and most watched sports events in television – will commence on February 5,...
by - January 16, 2017
New Tesla vehicles will have to pay when charging at any of the carmaker’s Supercharger stations once they exceed their annual limits. This comes as Tesla Motors announced revisions in...
by - January 16, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries