Completion of Acquisition

RNS Number : 6955D

Arbuthnot Banking Group PLC

28 April 2017

 

28 April 2017

Arbuthnot Banking Group PLC

Completion of Acquisition - Renaissance Asset Finance

Arbuthnot Banking Group PLC ("Arbuthnot" or "the Group") today announces that its wholly owned subsidiary Arbuthnot Latham ("AL") has completed the acquisition of 100% of Renaissance Asset Finance Limited ("RAF") from its founders following receipt of regulatory approval.

RAF is a provider of finance for a range of specialist assets which includes vintage and expensive cars and SME business assets.  On 31 March 2017 customer assets were £56m and RAF's net assets were £1.9m.

The consideration will be paid in four staged amounts, all of which will be in cash.  The first payment, equal to the net assets at completion, will be finally determined after completion and is anticipated to be £2.1m.   

The remaining three payments are performance related and will be based on the profits of RAF in each of the three calendar years 2018 to 2021.  The maximum amount payable for the performance based payments is limited to £6.5m.

AL has also provided an intercompany loan to RAF at completion of £57m to re-finance RAF's existing finance liabilities.   

The consideration and the refinancing of RAF's funding liabilities have been or will be satisfied from the Group's current cash resources.

Commenting on the transaction Ian Henderson the Chief Executive of Arbuthnot Latham said:

"I am delighted that Arbuthnot Latham, with the support of ABG can further develop its expansion and diversification plans.  The acquisition of RAF will fit well alongside our growing Private and Commercial banking units and I welcome the team from RAF into the Group.  I look forward to working with them in the future."

Enquiries:

Arbuthnot Banking Group Sir Henry Angest, Chairman and Chief Executive Andrew Salmon, Group Chief Operating Officer James Cobb, Group Finance Director Ian Henderson, Group Director and Chief Executive Arbuthnot Latham	0207 012 2400
Stifel Nicolaus Europe Ltd trading as KBW (Nomad and Joint Broker) Robin Mann Gareth Hunt Stewart Wallace	0207 710 7600
Numis Securities Ltd (Joint Broker) Chris Wilkinson Andrew Holloway	0207 260 1000
Bell Pottinger (Financial PR) Ben Woodford Sam Cartwright	0203 772 2588

 

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