Kirkland & Ellis LLP acted as Elektra’s transaction counsel, and Schiff Hardin LLP served as transaction counsel to Wintrust. Colonnade Securities LLC acted as a financial advisor to Elektra.
Wintrust Financial Corporation (Nasdaq: WTFC) executed the acquisition of Elektra Holding Company, LLC, the parent company of Chicago Deferred Exchange Company, LLC (CDEC). CDEC is a premier provider of Qualified Intermediary services (as defined by U.S. Treasury regulations) for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031. Under IRC Section 1031, a taxpayer may defer the gain on the sale of certain investment property if the taxpayer utilizes the services of a Qualified Intermediary.
CDEC has successfully facilitated more than 8,000 like-kind exchanges in the past decade for taxpayers nationwide. These transactions typically generate customer deposits during the period following the sale of the property until such proceeds are used to purchase a replacement property. These deposit flows result in a source of low-cost deposits. During 2018, deposits from CDEC customers averaged over $1 billion.
The aggregate purchase price was paid in cash and totaled approximately $51.9 million. The transaction is expected to be slightly accretive to Wintrust’s 2018 earnings per share.
Schiff Hardin LLP advised Wintrust with a team including Matt Galo (Picture), Nick Tipsord, Carly Weiss, and Rebecka Manis, with Bob Pluth (Tax), David Sattelberger, Kaitlin Riley Duran, and Emma Gormley (Real Estate), David Loring (Environmental), and Kevin Meil (Benefits).
Involved fees earner: Matthew Galo – Schiff Hardin LLP; Emma Gormley – Schiff Hardin LLP; David Loring – Schiff Hardin LLP; Rebecka Manis – Schiff Hardin LLP; Kevin Meil – Schiff Hardin LLP; Robert Pluth Jr. – Schiff Hardin LLP; Kaitlin Riley Duran – Schiff Hardin LLP; David Sattelberger – Schiff Hardin LLP; Nicholas Tipsord – Schiff Hardin LLP; Carly Weiss – Schiff Hardin LLP;
Law Firms: Schiff Hardin LLP;
Clients: Wintrust Financial Corp;