Close Brothers Group PLC
27 March 2008
CLOSE BROTHERS GROUP plc ACQUIRES TWO SPECIALIST LENDING BUSINESSES
27 March 2008, London - Close Brothers Group plc ("Close Brothers"), the
specialist merchant banking group, has acquired two niche lending businesses
with a combined loan book value of £145 million, for a combined premium to net
assets of circa £9 million. These businesses will become part of Close
Brothers' banking subsidiary, Close Brothers Limited.
Commercial Acceptances Group
Commercial Acceptances Group ("Commercial Acceptances") is one of the largest
and most respected UK short-term and bridging lenders with an excellent track
record of profitable, secured lending over the past 25 years. As at 29 February
2008, Commercial Acceptances had a loan book of around £80 million and,
pursuant to the terms of the deal, Close Brothers has refinanced all of the
group's existing loan facilities. The business was acquired for a total
consideration of approximately £31 million, including goodwill of £7 million.
The experienced management team, led by Lawrence Brown, will continue to manage
the business as part of the Close Property Finance division.
Amber Credit
Amber Credit is a specialist insurance premium finance business. The group lends
to both individuals and businesses. As at 29 February 2008 the group had a loan
book of approximately £65 million and, pursuant to the terms of the deal, Close
Brothers has refinanced all of the group's existing loan facilities. The
business was acquired from Skipton Building Society for a consideration of £2
million with goodwill arising on acquisition also anticipated to be circa £2
million.
Amber Credit will be merged with Close Brothers' existing premium finance
business, Close Premium Finance.
These loan books are expected on average to generate returns on gross assets in
line with the returns produced by Close Brothers' Banking Division. Accordingly
the transactions will be earnings enhancing in FY 2009.
Commenting on the acquisitions, Stephen Hodges, Managing Director of Close
Brothers Group, and Executive Chairman of Close Brothers Limited said: "These
acquisitions fit exceptionally well into the Close Brothers' family. We target
high quality, focused businesses in areas where we have a solid understanding
and presence. These deals are good examples of Close Brothers applying its
capital and funding strength to grow by investing in highly profitable
businesses."
Enquiries to:
Stephen Hodges Close Brothers Group plc 020 7426 4000
Justin Clark Close Brothers Group plc 020 7426 4000
David Waller Maitland 020 7379 5151
This information is provided by RNS
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