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ORIX Corporation, the Tokyo-based diversified financial services group, has announced its intention to acquire a majority interest in Hilco Global, an Illinois-based financial services firm. The nonbinding Letter of Intent was signed on May 9 by ORIX’s U.S. subsidiary, ORIX Corporation USA (OCU), and the definitive agreement terms are still under negotiation.
Hilco Global specializes in valuation advisory and asset-based lending, and ORIX aims to enhance its asset management arm in the U.S. by incorporating Hilco Global’s expertise. Hilco Global, established in 1987, has a capital of USD 348 million as of December 31, 2024, and is considered a leader in maximizing asset value for both healthy and distressed companies.
The majority stakeholders in Hilco Global, including Jeffrey B. Hecktman, CEO, and other management team members, are the primary sellers in the acquisition. The financial terms and timeline for the acquisition are currently being discussed and will be disclosed once finalized.
ORIX notes that the completion of this acquisition is contingent upon the execution of a definitive agreement, which will include employment agreements with key Hilco management personnel. While Hilco is expected to qualify as a Specified Subsidiary under Japanese regulations post-acquisition, ORIX anticipates that the impact on its consolidated financial results will be immaterial.
This move represents a strategic expansion for ORIX, which operates globally in various sectors including financing, investment, life insurance, and real estate. The corporation’s global presence spans around 30 countries with approximately 34,000 employees.
Investors and interested parties are advised to await further announcements for definitive details regarding the acquisition. ORIX Corporation’s forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those currently anticipated.
This news is based on a press release statement.
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