BB&T Corp. sells factoring portfolio to New York firm
By Jessica Seaman
– Reporter, Triad Business Journal
Jan 31, 2018, 6:29am
As a result of the acquisition, 25 of BB&T's employees in the factoring division will join Rosenthal, which will have an office based in High Point.
"This deal also allows BB&T to continue its reconceptualization effort to focus on the businesses that are a better long-term strategic fit for our company," said Brian Davis, spokesperson for BB&T.
As part of the deal, Rosenthal will acquire 90 factoring clients from BB&T, which it says will add about $2 billion in factored volume.
Factoring, offered by BB&T through its Commercial Lending division, offers accounts receivable management services to replace credit and collection functions within an organization. It also provides working capital secured by foreign or domestic accounts receivable and inventory.
Rosenthal is an independent factoring, asset-based lending and purchase-order financing firm based in New York. The company also plans to add a office in Georgia as a result of the deal.
Rosenthal said it's the first acquisition in the company's history. The company said it will allow it to diversify in the region and other industries.
“We are excited to acquire BB&T’s portfolio of factoring clients and honored to welcome their talented team of professionals into the Rosenthal family,” said Peter Rosenthal, president of the company “This acquisition is a logical step forward for our firm, significantly advancing our goal of establishing Rosenthal as the leading independent national finance company.”
The announcement of the acquisition comes on the heels of BB&T's recent commitment to spend up to $50 million to invest or acquire emerging fintech companies.