THE YEN FOR AMERICAN CLIENTS
The volatility of the leasing industry has meant incessant mergers and acquisitions. Seafirst sold its leasing subsidiary to Metropolitan Life, which also bought Litton Industries Credit Corporation.
Equilease, the leasing subsidiary of Allied Corporation, is said to be available, though it may be attempting a leveraged buy-out. Ingersoll Rand's equipment finance unit, too, may be for sale.
The broken-up parts of AT&T have been building up leasing capability: AT&T itself has hired Tom Wajnert, from USLeasing, to develop AT&T Credit. New Jersey-based Bell Atlantic bought Tricontinental Leasing, with its strong middle-market presence. Another local telephone operating company, Denver-based US West, has just bought New York-based Commercial Funding Inc from the consortium of Scandinavian banks which bought out its founders only two years ago.
Truck leasing companies have been eagerly sought by McDonnell Douglas Finance Corporation, in its quest to diversify out of vendor aircraft leases. It has bought Brind Leasing, York Truck Rental and Motor Truck Leasing, and now takes in $50 million annually in truck leasing revenues.
Only 27% of its $1 billion in assets is in aircraft; it is therefore well advanced along the path beaten by General Electric Credit decades ago when it diversified out of leases on General Electric appliances.