The distribution finance group of Textron Financial, based here, has acquired the inventory finance business of Electrolux Financial (EFC).
The newly acquired unit is now part of Textron Financial's technology finance division, but will continue to operate from its former headquarters in Columbus, Ohio.
EFC provides major appliance and consumer electronics dealers with wholesale inventory financing, and also provides Electrolux Home Products with ancillary credit and administrative services. The acquisition gives Textron Financial a sizeable presence in the United States' white- and brown-goods markets with over $160 million in receivables, the company said. Textron also assumes EFC's role as the preferred wholesale inventory financing lender for Electrolux's majap operating division within the United States.
Textron Financial's technology finance division first entered the majap and CE markets last October. The EFC acquisition, said division president Keith Boudreau, “demonstrates Textron's level of commitment to the industry,” and “instantly gives Textron Financial the capability to leverage our successful track record in the technology sector with a proven provider of financing in the consumer electronics and appliances markets.”
Arne Antonsson, who served as president of EFC, said, “This transaction allows Electrolux to continue to focus on our core marketing and manufacturing activities, while giving our customers access to Textron's world-class financial services group.”
Dealers, distributors, manufacturers, buying groups and other EFC customers should see no interruption in service, Textron Financial said. The company has hired former EFC staff, including operations VP Kim Caldwell, and will continue to provide day-to-day account management. EFC's dealer and supplier on-line payment systems and Home Source credit card program will also remain available to dealers through Textron Financial. “We expect the transition to be entirely seamless for current customers,” said Caldwell.