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Key Equipment Finance to Acquire American Express Unit
CLEVELAND -- Key Equipment Finance, the equipment leasing and an affiliate of KeyCorp, will acquire American Express Business Finance Corp., the equipment leasing unit of American Express' small business division, officials announced recently.With a portfolio of approximately $1.5 billion at Sept. 30, AEBF is a commercial finance company that provides capital for small and middle market businesses, principally in the healthcare, information technology, office products and commercial vehicles/construction, and industrial segments. AEBF lease products and serviced range from $20,000 to $75,000 for capital purchases such as commercial vehicles, dental, surgical and medical diagnostic equipment, telecommunications and IT hardware and point-of-sale equipment at national restaurant chains, officials said.The transaction is expected to close in the fourth quarter, pending regulatory approval. Terms were not disclosed. Key expects the acquisition to be accretive to 2005 earnings per share.AEBF, headquartered outside Boulder, Colo., operates across the United States with major hubs in Houston, Chicago and Parsippany, N.J.. The division has approximately 400 sales and service employees.Key Equipment Finance is presently the nation's third-largest bank-based equipment financing company, managing a portfolio of approximately $10 billion and conducting business in 25 countries, according to Paul A. Larkins, president and chief executive officer. The acquisition will move the company into a leadership position in the "small-ticket" lease segment. The combination will increase KEF's office network for small-ticket lease solutions to over 70 markets across the country -- the widest geographic reach of any provider in that segment, Larkins said.KeyBank's small business and corporate and investment banking business groups advise more than 220,000 companies and institutions across the United States, Larkins noted.Susan Sobbott, president of OPEN: The Small Business Network from American Express, said, "Our Business Finance unit has been successfully serving business owners through our vendor leasing partners strategy. At this point in AEBF's business development, we believe it makes more strategic sense for it to grow as part of a company where equipment leasing is a core focus, and for OPEN from American Express to concentrate on our strength -- the small business payments business."Headquartered outside Boulder, Colorado, Key Equipment Finance oversees a $10 billion portfolio with annual originations of approximately $4.0 billion. The company has major management and operations bases in Toronto, Ontario; Albany, New York; London, England; and Sydney, Australia. The company, which operates in 25 countries and employs more than 675 people worldwide, has been in the equipment financing business for more than 30 years. Additional information regarding Key Equipment Finance, its products and services can be obtained online at KEFonline.com.KeyCorp is one of the nation's largest bank-based financial services companies, with assets of approximately $88 billion.Visit KeyCorp: www.key.com"