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SmartBank Agrees to Acquire Fountain Leasing

May 04, 2021, 07:23 AM
Filed Under: Mergers & Acquisitions

SmartBank, the banking subsidiary of SmartFinancial, Inc., announced it has entered into a definitive agreement to acquire Fountain Leasing, LLC.

Fountain, headquartered in Knoxville, TN, and founded in 2006, had net lease investments of approximately $56 million as of March 31, 2021 and maintains offices in Atlanta, GA, Charlotte, NC, and Memphis and Nashville, TN. The acquisition of Fountain provides SmartBank with a specialty lending platform that offers construction equipment financing to small and medium sized businesses throughout the Southeast. Fountain’s senior leadership, all of whom will remain with Fountain after the transaction close, have over 100 years of combined experience in the construction equipment lending space.

SmartBank plans to change Fountain’s name to Fountain Equipment Finance, LLC following the closing of the transaction. The closing of the transaction is subject to the satisfaction or waiver of certain customary closing conditions and is expected to close within the next week.

SmartBank will utilize its low-cost funding and excess liquidity to support Fountain’s proven growth capabilities. SmartBank expects to expand Fountain’s services across its entire Tennessee, Alabama and Florida Panhandle footprint as well as cross-sell insurance services to Fountain’s new and existing client network through its wholly owned subsidiary, Rains Insurance Agency.

“We have an extremely high level of respect for Fountain’s leadership and the company they built and are excited to partner with Fountain for the next stage of their journey. While Fountain will continue to operate much as it does today, we are excited to introduce the broader array of products and services the SmartBank platform has to offer to Fountain’s clients,” said Billy Carroll, President and CEO of SmartFinancial. “The opportunity to diversify our business lines and expand these services across our footprint is what attracted us to this opportunity.”

Fountain President Warren Payne said, “We are very excited to partner with a bank that has the vision of SmartBank. The ability to leverage their resources will make Fountain an even more dynamic company and we look forward to growing together.”

Alston & Bird LLP served as legal advisor to SmartBank. Performance Trust Capital Partners, LLC provided financial advisory services in connection with this transaction. Gentry, Tipton & McLemore P.C. served as legal advisor to Fountain.

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