Japanese Conglomerate to Obtain 20-Percent Ownership in Westlake Financial Services
Under a partnership between the two companies announced Tuesday afternoon, Japanese conglomerate Marubeni Corp. will obtain a 20-percent share of Westlake Financial Services.
The deal, which closed Friday, is valued at $250 million in newly issued equity.
In addition to owning a fifth of Westlake, Marubeni will also have two executive board seats.
“What we found in Marubeni is a business partner that shares our vision for long-term growth,” said Westlake chief financial officer Paul Kerwin. “Not only are they interested in investing capital, they want to leverage their existing relationships and help Westlake grow at a higher level than if we were to continue operating on our own.”
Westlake also delved into some of its upcoming projects that have already started, including its plans to boost penetration among independent and franchise dealerships, broaden portfolio acquisitions and direct lending divisions and examine various strategic opportunities, among other projects.
Ian Anderson, president of Westlake, cited Marubeni’s appreciation for Westlake’s technology use as being important in the company’s decision.
“Our technology platform is really a platform for growth,” Anderson explained. “Instead of opening regional branches, we use technology to bridge our 10,000-strong dealer base and the home office.
“Of course, we still have sales representatives out in the field — the auto industry is very much a people-business — but our software and business structure lend themselves to very aggressive growth without the need for excess infrastructure. Marubeni saw that potential, and we’re very happy to have them on board to help maximize that potential,” he continued.
Don Hankey, Westlake’s chief executive officer and chairman of the board, offered his take on partnership: “Marubeni is, quite simply, a perfect fit for Westlake. They are not looking to invest in our company with an exit strategy in mind. They are in it for the long haul. This partnership will help Westlake become the No. 1 full-spectrum auto finance lender in the country.”