SmartBank, the banking subsidiary of SmartFinancial, entered into a definitive agreement to acquire Fountain Leasing.
Fountain Leasing, headquartered in Knoxville, TN, and founded in 2006, had net lease investments of approximately $56 million as of March 31, 2021, and maintains offices in Atlanta; Charlotte, NC; Memphis, TN; and Nashville, TN.
The acquisition of Fountain Leasing will provide SmartBank with a specialty lending platform that offers construction equipment financing to small and medium sized businesses throughout the Southeast. Members of Fountain Leasing’s senior leadership team, who will remain with Fountain Leasing after the transaction closes, have more than 100 years of combined experience in the construction equipment lending space. SmartBank plans to change Fountain Leasing’s name to Fountain Equipment Finance following the closing of the transaction.
The closing of the transaction is subject to the satisfaction or waiver of certain customary closing conditions and is expected to close within the next week.
SmartBank expects to expand Fountain Leasing’s services across its entire Tennessee, Alabama and Florida footprint. SmartBank also will cross-sell insurance services to Fountain Leasing’s new and existing client network through Rains Insurance Agency, SmartBank’s wholly-owned subsidiary.
“We have an extremely high level of respect for Fountain’s leadership and the company they built and are excited to partner with Fountain for the next stage of their journey. While Fountain will continue to operate much as it does today, we are excited to introduce the broader array of products and services the SmartBank platform has to offer to Fountain’s clients,” Billy Carroll, president and CEO of SmartFinancial, said. “The opportunity to diversify our business lines and expand these services across our footprint is what attracted us to this opportunity.”
“We are very excited to partner with a bank that has the vision of SmartBank,” Warren Payne, president of Fountain Leasing, said. “The ability to leverage their resources will make Fountain an even more dynamic company and we look forward to growing together.”
Alston & Bird served as legal advisor to SmartBank. Performance Trust Capital Partners provided financial advisory services in connection with this transaction. Gentry, Tipton & McLemore served as legal advisor to Fountain Leasing.
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