Capital One has announced the entry into a definitive agreement to acquire BlueTarp Financial, a business-to-business (B2B) trade credit financing company headquartered in Portland, Maine.
BlueTarp delivers customised B2B credit management programmes to merchants and small- to medium-sized companies. It allows for a seamless purchase-to-payment process featuring a combination of accounts receivable management tools, cash flow and risk protection, with optional collections and customer support. These programmes will provide additional servicing capabilities and broader financial offerings for Capital One’s co-brand and private-label credit card partnerships clients.
BlueTarp’s clients include national and regional B2B suppliers across a variety of industries including office supplies, hardware, home building, building materials, lumber and supplies, tools and equipment and many more. Founded in 1999, BlueTarp was founded to give building material suppliers a superior credit program that delivers cash flow so that they could invest in their business and grow sales while protecting themselves from risk.
Terms of the transaction were not disclosed. The transaction is expected to close in the third quarter of 2019, subject to customary closing conditions. Wachtell, Lipton, Rosen & Katz acted as legal advisor to Capital One in connection with the transaction. Evercore acted as financial advisor to BlueTarp, and Goodwin Procter LLP acted as its legal advisor.