A company getting ready to put itself up for sale often clears its deck of businesses and other assets that aren’t central to its core business strategy. The thought is that a leaner, meaner company is more attractive to a potential acquirer.
It’s unknown whether that was the case with SunTrust Banks Inc., which in September pared a non-core asset. SunTrust has been rumored for months to be ripe for a takeover. Last month, Ladenburg Thalmann & Co. banking industry analyst Richard Bove suggested that SunTrust merge with BB&T or Regions Financial.
In the September deal, SunTrust sold its Fleet One business to a private equity group for undisclosed terms. King & Spalding partner Bill Baxley advised SunTrust on the sale.
Fleet One, of Nashville, Tenn., is engaged in the business of providing fuel charge cards and management services to companies that operate fleets of trucks and other vehicles. SunTrust picked up Fleet One in 2004 as part of its acquisition National Commerce Financial Corp. of Memphis, Tenn.
SunTrust hasn’t said whether it’s looking for a buyer. SunTrust is participating in the U.S. Treasury Department’s program of making equity investments in banks. Treasury is acquiring $3.5 billion in preferred shares in SunTrust, which has said it plans to use the money to expand lending and possibly acquire other banks.
Pepper Hamilton advised one of Fleet One’s buyers, Philadelphia private-equity fund LLR Partners Inc. Kirkland & Ellis advised the other buyer, FTVentures of San Francisco. Fleet One’s management also participated in the buyout.