Sygnus Credit Investments (SCI) has indicated that it has completed acquisition of 93.66 per cent of the outstanding shares in Acrecent Financial Corporation (AFC) through its subsidiary, SCI Puerto Rico Inc, effective February 28.

Management will retain a 6.34 per cent stake in the company. 

The Puerto Rican regulator, the Office of the Commissioner of Financial Institutions (OCFI), approved the acquisition of the shares on February 18. 

The purchase price paid for the shares was US$21,223,591. In addition, the acquisition consists of an earnout that will only be contingent upon the attainment of agreed material financial targets. 

“The completion of this key acquisition is an excellent strategic move that will enhance the opportunity for growth while increasing shareholder value,” said SCI Chairman Linval Freeman.

“The acquisition represents a new paradigm for SCI, and is directly aligned with its strategy to expand across the Caribbean region. I look forward to the new opportunities that this acquisition will create.”

Acciording to SCI, AFC has a private credit portfolio of at least US$60 million and assets under administration of at least US$125 million.

SCI said the company is led by an experienced team with an impressive track record in credit management and that the senior managers have had extensive careers in the commercial finance industry, primarily from GE Capital in the USA and Mexico, and Banco Popular in Puerto Rico.

“The acquisition of Acrecent is a major step in the expansion of the Sygnus footprint. After a year-long process of working together to successfully complete the transaction, I am confident that the businesses are a great strategic fit, and more importantly, the culture and ‘chemistry’ are an excellent fit. I am excited as we embark on the next phase of our journey,” stated Milton Brady, chairman of Sygnus Capital Limited, the investment manager for SCI.