(Alliance News) - Close Brothers Group PLC on Wednesday said it has agreed to buy Irish motor finance provider Bluestone Motor Finance (Ireland) DAC.
The London-based merchant banking group did not disclose a fee for the cash deal but said it expects the transaction to complete in the fourth quarter of 2023.
Close Brothers said Bluestone Motor Finance has originated over EUR450 million since inception in 2014 and had loans under management of EUR132 million at December 31 last year.
The transaction is aligned with the group's commitment to Ireland as a strategic market, Close Brothers said, and represents an "important milestone in our commitment to delivering disciplined growth in our Retail business".
"I am delighted to announce this transaction," said Chief Executive Adrian Sainsbury. "Bluestone Motor Finance has delivered impressive growth and will complement our Motor Finance presence in the UK and Ireland, a strategic growth market for the group.
"We would like to welcome [Managing Director] Donal [Murphy] and the team to Close Brothers and look forward to working together to further expand our presence in the Irish market."
Bluestone Group Managing Director Peter McGuinness commented: "We are very pleased to have agreed terms for the sale of Bluestone Motor Finance to Close Brothers. Under their ownership, we are confident the business will continue to flourish, delivering strong outcomes to the increasing number of customers looking for efficient and flexible solutions to buy a car.
"Donal Murphy and his team have built a progressive, market leading business in Ireland, and I would like to wish them well in this exciting new chapter. Post completion, we look forward to continuing our relationship with Bluestone Motor Finance and building a new relationship with Close Brothers via our technology business, Fignum."
Shares in Close Brothers were up 3.6% to 866.33 pence each in London on Wednesday morning.
By Greg Rosenvinge, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
Close Bros (CBG)