TCF Financial to acquire Winthrop Resources for $326 million

Weekly Corporate Growth Report, Mar 3, 1997

The Deal: TCF Financial has agreed to buy Winthrop Resources for $326 mil. in stock, offering stock worth $36.50/ s. TCF will pay 6.9 mil. shares, exchanging one share for 1.2877 Winthrop shares. On the news Winthrop stock gained 37.5, to $34375.

Discussion: Winthrop Resources leases high-technology and business essential equipment to customers in a variety of industry segments throughout the U.S. Its most commonly offered product is a full-payout, small-ticket lease (leased equipment with a cost less than $250,000). Winthrop acquires the equipment it leases primarily with funds borrowed from financial institutions. The company's new income rose 27% in 1996, to $14.7 mil.

TCF Financial is a stock savings bank holding company with $7 bil. in assests. Its 1996 fourth quarter earnings reached a new peak when it topped $27 miL, about 8% above the year-ago figure. TCF has found its niche as a lender to middle income and lower income consumers, and calls the acquisition "a great fit, strategically."

"What we're doing with Winthrop is funding their expansion," said a TCF spokesperson Winthrop said the transaction promises "an opportunity for low-cost funding to support its continuous growth."

TCF Financial is a stock savings bank holding company with $7 billion in assets. It has 268 branches. TCF affiliates include mortgage banking, title insurance, annuity, mututal fund, and consumer finance companies.