27th Mar 2008 07:01
Close Brothers Group PLC27 March 2008 CLOSE BROTHERS GROUP plc ACQUIRES TWO SPECIALIST LENDING BUSINESSES 27 March 2008, London - Close Brothers Group plc ("Close Brothers"), thespecialist merchant banking group, has acquired two niche lending businesseswith 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 largestand most respected UK short-term and bridging lenders with an excellent trackrecord of profitable, secured lending over the past 25 years. As at 29 February2008, 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 managethe business as part of the Close Property Finance division. Amber Credit Amber Credit is a specialist insurance premium finance business. The group lendsto both individuals and businesses. As at 29 February 2008 the group had a loanbook of approximately £65 million and, pursuant to the terms of the deal, CloseBrothers has refinanced all of the group's existing loan facilities. Thebusiness was acquired from Skipton Building Society for a consideration of £2million with goodwill arising on acquisition also anticipated to be circa £2million. Amber Credit will be merged with Close Brothers' existing premium financebusiness, Close Premium Finance. These loan books are expected on average to generate returns on gross assets inline with the returns produced by Close Brothers' Banking Division. Accordinglythe transactions will be earnings enhancing in FY 2009. Commenting on the acquisitions, Stephen Hodges, Managing Director of CloseBrothers Group, and Executive Chairman of Close Brothers Limited said: "Theseacquisitions fit exceptionally well into the Close Brothers' family. We targethigh quality, focused businesses in areas where we have a solid understandingand presence. These deals are good examples of Close Brothers applying itscapital and funding strength to grow by investing in highly profitablebusinesses." 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 The company news service from the London Stock ExchangeRelated Shares:
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