Steve Hudson’s ECN Capital Corp. appears to have struck pay dirt on a four-year old acquisition.

The non-bank lender announced Tuesday that it had reached a deal to sell a pair of home-renovation financing subsidiaries, Service Finance Company LLC and Service Finance Holdings LLC, to a division of Truist Financial Corp. for US$2 billion, representing a more than 500 per cent return on investment over the course of less than half a decade.

ECN Capital originally acquired Service Finance in 2017 for US$304 million as it expanded its presence in home renovation loans in the United States.

In the wake of the deal, ECN said it plans to distribute most of the proceeds from the sale – about US$1.5 billion – directly to shareholders through a special dividend of $7.50 per common share.

Hudson, ECN Capital’s chief executive officer, said the deal fits strategically within the company’s goal to return capital to shareholders.

“ECN’s primary strategic directive has been to manage and maximize investor capital in the specialty finance sector,” he said in the release. “Today’s announcement to sell [Service Finance] for $2 billion marks another milestone on the road to that goal.”

The deal comes amid a renovation boom on both sides of the border, as the work-from-home movement triggered by the pandemic prompted many homeowners to embark on ambitious projects to improve their living spaces.

The deal is subject to licensing and regulatory approvals, and is expected to close in the fourth quarter. CIBC Capital Markets served as ECN’s financial advisor on the deal.