The GreenSky deal is anticipated to have a $0.19 impact on Goldman Sachs’ third-quarter 2023 earnings per share.
Up until completion, Goldman Sachs will keep the platform running and track ongoing business outcomes, including the effect of a deal for the Consortium to buy recently issued loans.
David Solomon, chairman and CEO of Goldman Sachs, commented: “This transaction demonstrates our continued progress in narrowing the focus of our consumer business.
“While GreenSky is an attractive business, we are focused on advancing the strategy we laid out for our two core franchises. In Global Banking & Markets, we’ve improved our wallet share and are demonstrating strong growth in financing activities; and across our Asset & Wealth Management platform we are making very strong progress towards both our fundraising and management fee targets.”
Sixth Street is the driving force behind the consortium that is buying GreenSky, which additionally involves money and accounts under the control of KKR, Bayview Asset Management, and CardWorks.
The agreement also features strategic finance from CPP Investments and sizeable backing from PIMCO via an asset acquisition.
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“GreenSky accelerates business growth for its network of home improvement merchants by delivering innovative payment solutions at the point of sale, and we plan to continue the company’s legacy of driving growth through enhanced technology and great user experiences,” added Alan Waxman, co-founder, and CEO of Sixth Street. “Our team, led by Sixth Street co-founder Michael Muscolino and head of asset-based finance Michael Dryden, has brought together an impressive group of strategic partners to put GreenSky and its experienced leadership team in the best position to succeed going forward.”
Furthermore, the financial adviser to Goldman Sachs is Goldman Sachs & Co., while the firm’s legal counsel is Wachtell, Lipton, Rosen & Katz.
Wells Fargo Securities is the Consortium’s primary financial adviser, with additional financial advisers including BofA Securities and Mizuho Americas, along with legal assistance from Simpson Thacher & Bartlett LLP and Alston & Bird LLP.
The purchase agreement is scheduled to close in the first quarter of 2024.