Chesswood Group Limited
TSX : CHW

Chesswood Group Limited

October 05, 2015 07:30 ET

Chesswood Group Announces Proposed Sale of Acura Dealership

Focus on Growth of Core North American Specialty Finance Businesses

TORONTO, ONTARIO--(Marketwired - Oct. 5, 2015) - Chesswood Group Limited (TSX:CHW) ("Chesswood" or the "Company") announced today that it has entered into a definitive agreement to sell its Acura dealership, Acura Sherway, for an aggregate estimated purchase price of approximately $22.0 million (based on current vehicle inventory). Chesswood expects to record a gain on the sale of approximately $4.0 million. The transaction is expected to close during the current fiscal year and is subject to the purchaser obtaining customary consents, including the consent of Honda Canada.

The transaction allows Chesswood to complete its transformation into a focused North-American specialty finance company, following a number of transactions that began in late 2014, including a new corporate banking facility, the divesting of our legal finance business and the acquisition in March of our Canadian specialty finance businesses. Our North American platform now includes Pawnee Leasing and Windset Capital, providers of equipment financing and working capital loans, respectively, to small business in the United States and Blue Chip Leasing and EcoHome Financial, providers of equipment financing to businesses and consumers, respectively, in Canada.

Chesswood's portfolio consists of more than 35,000 loans and leases with gross receivables of more than $500 million.

"This transaction allows Chesswood to be solely focused on the growth and development of our specialty finance companies. We are thankful to our team at Acura Sherway for providing Chesswood with an incredibly consistent level of strong financial performance over the sixteen years we have been together" said Barry Shafran, Chesswood's President and Chief Executive Officer.

About Chesswood Group Limited

Chesswood Group Limited is a financial services company with operating businesses in both Canada and the U.S., including its North-American equipment finance businesses Pawnee Leasing Corporation of Fort Collins, Colorado and Blue Chip Leasing Corporation of Toronto, Ontario.

To learn more about Chesswood Group Limited, visit www.ChesswoodGroup.com .

The separate websites of Chesswood Group Limited's operating businesses are at www.PawneeLeasing.com, www.WindsetCapital.com, www.BlueChipLeasing.com, www.EcoHomeFinancial.com, and www.AcuraSherway.com.

This press release contains forward-looking statements that involve a number of risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. Many factors could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

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