Contact Information: Contact: For BSMB: Melissa Daly or Elisa Marks Brunswick Group (212) 333-3810 For Wells Fargo: MEDIA Steve Carlson (515) 557-6144 (515) 313-1018 (cellular) INVESTORS Bob Strickland (415) 396-0523
Bear Stearns Merchant Banking Acquires Wells Fargo's Latin American Consumer Finance Subsidiary
| Source: Bear Stearns Merchant Banking
NEW YORK, NY -- (MARKET WIRE) -- January 16, 2007 -- Bear Stearns Merchant Banking ("BSMB"), a
leading private equity firm focusing on middle-market investments, today
announced it has acquired, through a newly formed entity called Caribbean
Financial Group ("CFG"), certain direct and indirect Latin American
consumer finance subsidiaries of Wells Fargo & Company. The acquired
entities represent regional consumer finance companies that offer unsecured
personal loans, sales finance and related credit insurance products to
individuals in Panama, Aruba, the Netherlands Antilles, Trinidad & Tobago
and Mexico.
Prior to the acquisition, the business of the acquired entities was managed
by Wells Fargo Financial, a unit of Wells Fargo & Company. Terms of the
transaction were not disclosed.
Wells Fargo Financial continues to have a presence in Puerto Rico through
Reliable Financial Services, an automobile financing business.
This acquisition represents the first investment for BSMB's third private
equity fund, Bear Stearns Merchant Banking Partners III, L.P., comprising
approximately $2.7 billion of committed capital. BSMB announced the final
closing of this investment vehicle in August 2006.
"The management team has done an outstanding job of building the business
into a leading consumer finance company in each of its regional markets.
We are excited to partner with management to build on this strong
foundation and further enhance growth and profitability," said Robert
Juneja, Managing Director of BSMB. "This acquisition demonstrates BSMB's
long-term commitment to pursue investment opportunities in the financial
services sector, particularly in consumer finance."
Dan Porter, a Senior Advisor to BSMB on financial services investments,
will assume the role of Executive Chairman and will be actively involved in
providing strategic guidance and oversight to CFG.
Oriol Segarra, President of the Wells Fargo Financial Latin American
Consumer Group, will continue to lead the company as President & Chief
Executive Officer of CFG. "All of our team members are excited about the
growth possibilities that this transaction provides. BSMB has
distinguished itself in providing not only financial support, but also
business expertise to senior management teams in its quest to capitalize on
growth opportunities," said Mr. Segarra.
"The sale of Wells Fargo Financial's remaining consumer lending operations
in Latin America will enable us to focus our resources on our core
businesses in the United States and Canada, where we have greater
opportunities to satisfy all of our customers' financial needs and help
them succeed financially," said Tom Shippee, President and Chief Executive
Officer of Wells Fargo Financial.
About BSMB:
BSMB, the private equity affiliate of The Bear Stearns Companies Inc.
(NYSE : BSC ), invests private equity capital in compelling leveraged
buyouts, recapitalizations and growth capital opportunities alongside
superior management teams. BSMB focuses on making control or
entrepreneur-driven investments, principally in middle-market retail,
financial services and consumer products companies. Since its formation in
1997, BSMB has been an investor in over 50 portfolio companies. BSMB
manages nearly $5 billion of private equity capital, including its new $2.7
billion institutional fund and capital dedicated to its affiliate, Bear
Growth Capital Partners. Investments by BSMB have included: ACA Capital
Holdings (NYSE : ACA ), Balducci's, CamelBak Products, Cavalry Investments,
Churchill Financial Holdings, Dairyland, Everything But Water, Harlem
Furniture, Multi Packaging Solutions, New York & Company (NYSE : NWY ), Reddy
Ice (NYSE : FRZ ), Seven For All Mankind, Stuart Weitzman, Transamerican Auto
Parts Company and The Vitamin Shoppe. More information about BSMB can be
found at www.bsmb.com.
About Wells Fargo:
Wells Fargo Financial, a unit of Wells Fargo & Company, provides real
estate-secured lending, automobile financing, consumer and private-label
credit cards and commercial services to consumers and businesses. The
company has $67 billion in assets, approximately 21,000 team members and
operates in 48 states across the U.S., the 10 provinces of Canada, Puerto
Rico and the Pacific Rim. It is headquartered in Des Moines, Iowa. More
information about Wells Fargo Financial is available at
www.wellsfargofinancial.com.
Wells Fargo & Company is a diversified financial services company with $483
billion in assets, providing banking, insurance, investments, mortgage and
consumer finance to more than 23 million customers from more than 6,200
stores and the internet (wellsfargo.com) across North America and
internationally. Wells Fargo Bank, N.A. has the highest possible credit
rating, "Aaa," from Moody's Investors Service and the highest credit rating
given to a U.S. bank, "AA+," from Standard & Poor's Ratings Services.