Engs Commercial Finance & John Engs Announce a Partnership with Industry Veterans, Craig Weinewuth & Jim Freund, along with a Significant Equity Investment from Senator Investment Group LP

Engs Commercial Finance closes comprehensive $200 million equity and debt recapitalization to provide long-term growth capital and opens Chicago office to expand nationwide network

SAN RAMON, Calif.--()--Engs Commercial Finance (“ECF” or the “Company”) and John Engs, ECF’s principal shareholder, announced a partnership with industry veterans, Craig Weinewuth and Jim Freund, and closed a strategic equity investment from an affiliate of Senator Investment Group LP (“Senator”), a New York-based private investment firm. ECF was founded over 60 years ago and has established itself as a leading, independent commercial equipment finance company that provides lease and financing solutions to small and mid-sized customers in the trucking, trailer and related markets, predominantly on the West Coast. Concurrent with the equity investment, the Company has also entered into a new, long-term credit facility arranged by BMO Capital Markets and US Bank that will allow ECF to execute on its nationwide growth strategy.

"We are excited about joining forces with Craig, Jim and Senator since it will provide ECF with the expertise and balance sheet liquidity to expand our customer-focused model into a national platform focused on the transportation industry,” said Mr. Engs. “We are fully committed to maintaining the longstanding personal relationships ECF has established with its end-user customers, which we believe are fundamental to the Company’s ongoing success. We look forward to leveraging the industry knowledge and contacts that our value-added partners will provide as we offer our comprehensive lease and loan product offering to a wider set of customers and vendors throughout the country.”

“ECF has an outstanding reputation as a knowledgeable, service-oriented lender committed to providing financing solutions to ensure its customers succeed,” stated Mr. Weinewuth. “We are thrilled to be partnering with John Engs who has built a very successful business and whose family has been providing dedicated solutions to the trucking industry for over half a century.” Mr. Weinewuth continued, “We look forward to expanding upon ECF’s success on the West Coast as we service customers on a national basis, all with a continued focus on maintaining ECF’s high levels of professionalism and customer service. In addition, we are particularly excited that John Engs will maintain a significant equity interest in the Company going forward and will continue in his day-to-day operating role with a continued focus on growing, servicing and interfacing with his existing end-user customers.”

Adelphi Capital, a Washington, DC-based merchant banking business with a focus on the transportation and logistics industries, worked with Senator and the management team to structure the partnership. Fried Frank Harris Shriver & Jacobson LLP provided legal advice to Senator, and Zachary Scott and the Law Offices of Mark Beatty advised Mr. Engs and ECF on the recapitalization transaction.

The Board of Directors will include representatives of Senator as well as Tom Donohue, Jr. (Adelphi Capital’s founder), John Engs and Craig Weinewuth.

About Engs Commercial Finance

Engs Commercial Finance, headquartered in San Ramon, California, is an independent commercial equipment finance and leasing company focused on new and used equipment purchases in the fleet transportation, waste industry and other related transportation markets. Transactions are sourced through end-users, equipment vendors and original equipment manufacturers and typically range in size from $10,000 to $1,000,000.

About Senator Investment Group LP

Senator Investment Group LP is a New York-based registered investment adviser founded in 2008. The firm manages private investment funds that pursue credit and equity investments in both public and private securities. Senator manages more than $3.5 billion in assets on behalf of pension funds, endowments, foundations, families and other institutional investors.

Contacts

For Engs Commercial Finance
Craig Weinewuth, 630-256-8401
cweinewuth@engsfinance.com

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Contacts

For Engs Commercial Finance
Craig Weinewuth, 630-256-8401
cweinewuth@engsfinance.com