Peter Deeb, CEO of Hampton Financial Corporation, has announced that the company intends to acquire Oxygen Working Capital Corp (OCC), marking Hampton’s first foray into the Commercial Lending sector.
Hampton will acquire all of the limited partnership units, as well as the outstanding debt, of OCC from Terra Cotta Strategic Capital, in exchange for subordinate voting shares of Hampton in a deal valued at approximately $8 million.
As part of the acquisition, Peter Deeb expects that OCC’s current management will remain in place after closing. Hampton plans for the business, which has been growing successfully since being established in 2015, to be a strong contributor to its consolidated revenues and earnings, benefitting from access to Hampton’s existing Capital Markets capabilities.
“This is a big step for Hampton as we begin the next phase of the company’s development into a broader financial services group,” says Deeb. “We expect this transaction to be accretive to fully diluted earnings in the coming year.”
The Ontario based business, led by the principals of Terra Cotta, works with a portfolio of clients to ensure access to capital via a wide range of alternative lending solutions. Hampton’s acquisition of OCC is part of its continued efforts to explore opportunities to diversify its revenue sources by way of strategic investments in both complimentary business and non-core sectors.
As founder and chairman of Hampton Financial Corporation and its wholly owned subsidiary, Hampton Securities Limited (HSL), Peter Deeb has overseen the firm’s growth into one of the leading independent investment dealers in Canada. Since its founding in 1996, the company has built a strong reputation for developing proprietary investment strategies for individual and institutional clients. Deeb has also served as chairman of the Ontario District Counsel of IIROC (Now CIRO), as well as Chairman of its National Advisory Board.
Hampton has positioned itself as a unique private equity firm that seeks to build shareholder value through long-term strategic investments. Through its Hampton Securities Limited (“HSL”) subsidiary, Hampton is currently engaged in family office, wealth management, insurance brokerage, institutional services and capital markets activities. With the acquisition of Oxygen Capital, the group will now be able to provide bridge financing and commercial financing to its Capital Markets clients.