CHICAGO — Plastics financing firm Wentworth Capital Corp. (Booth N5375) has been acquired by Wells Fargo Equipment Finance Inc., in a move that will let Wentworth fund larger transactions and expand its offerings.
Wells Fargo, a unit of Wells Fargo Bank, purchased Wentworth's parent, Charter Financial Inc. June 6. Charter offers financing to niche firms, including plastics and packaging companies, that Wells Fargo does not specialize in, said Jim Renner, president of Wells Fargo Equipment Finance, based in Minneapolis.
Terms were not disclosed.
Wentworth President Sam Smith said the deal will let his company offer financing for deals up to $50 million, five times as large as it can on its own.
Wells Fargo also brings tax-lease and accounts-receivable products to Wentworth, and gives the company a stronger presence in the Western United States, where Wells Fargo has a strong presence, according to Smith.
About 35 percent of the $1 billion Charter has under management comes from Wentworth's plastics financing business, Smith said. New York-based Charter also handles financing in the packaging, media and technology industries.
Wentworth, based in Portsmouth, N.H., will continue its focus in plastics and flexible packaging, Smith said.
Wells Fargo has $3 billion in its portfolio, Renner said. Charter will be managed independently, Renner said. Key management will remain, Smith said.
Wells Fargo also brings a lower cost of capital and strong e-commerce products to Wentworth, Smith said.
