Canadian Western Bank announced its execution of agreements to purchase 97% of the preferred shares of National Leasing Group, with further agreements to acquire the balance expected prior to closing. In exchange for all preferred shares, the bank will issue $63.5 million of CWB common shares.

On February 1, 2010, CWB acquired 100% of the common shares of National
Leasing. The initial acquisition included contingent consideration equal to 23.75% of the agreed upon enterprise value and was represented by National Leasing preferred shares. Under the original agreement, the preferred shares participated in National Leasing’s future earnings growth.

“We believe this deal is a win-win for CWB shareholders and all other parties involved,” said Larry Pollock, president and chief executive officer of CWB. “In addition to being a great cultural fit, the contributions of National Leasing continue to add tremendous value to CWB Group. The company’s earnings have effectively doubled since 2009 and there remains significant growth potential looking forward.”

National Leasing Group provides lease financing solutions to businesses in Canada and the United States. The company was founded in 1963 and is based in Winnipeg, Canada. As of February 1, 2010, National Leasing operates as a subsidiary of Canadian Western Bank.

To view the full text of Canadian Western Bank’s news release, click here.