Acquisition

RNS Number : 9781E

Close Brothers Group PLC

04 January 2010

 



Acquisition of invoice financing loan book

Close Brothers Group plc ("Close Brothers") announces the acquisition today of the invoice financing loan book of GMAC Commercial Finance Limited (UK) for a premium to net book value of up to £4 million in cash.  The gross assets being acquired in the transaction will be the loan book which totals £94 million and therefore the total consideration payable will be a maximum of £98 million. The acquisition will include the transfer of 23 staff to Close Brothers.

The business will be integrated into Close Brothers' existing invoice finance business by the end of the current financial year to 31 July 2010.  The loan book is expected to break even in the current financial year and generate a return on gross assets broadly in line with the returns produced by the Banking division by the end of the financial year to 31 July 2012. This loan book was part of a larger, consolidated business and separate historical profits attributable to the assets are not available.

Commenting on the acquisition, Stephen Hodges, Managing Director of Close Brothers and Chief Executive of the Banking division said: "We are delighted to announce this acquisition of a high quality loan book in one of our core commercial banking businesses which adds further scale to our invoice finance operations and allows us to leverage our market experience and funding strength to create value for our shareholders."

Enquiries:

Debbie Sager                 Investor Relations                                           020 7655 3845

                                       Close Brothers Group plc

Justin Clark                    Press Enquiries                                              020 7655 3784

                                       Close Brothers Group plc

Anthony Silverman         Maitland                                                           020 7379 5151

 

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