Acquisition

20 Apr 2007 14:38

Scarborough Building Society20 April 2007 SCARBOROUGH COMPLETES PURCHASE OF CHANNEL ISLANDS SUBSIDIARY The Scarborough Building Society Group (Scarborough) today announced completionof its acquisition of the former Portman Building Society offshore deposittaking business Portman Channel Islands Limited. The business will now be knownas Scarborough Channel Islands Limited (SCIL). SCIL has a geographically diversedeposit book of circa £600 million and approximately 6,000 customers. Announcing completion of the deal, Scarborough Chief Executive, John Carrier,spoke of SCIL's plans to expand and develop what is already a successfulbusiness, now that it is part of the Scarborough Group. Mr Carrier explained that future plans include using a blend of competitivepricing, product innovation and the development of new markets. SCIL has reassured existing customers that the terms and conditions of theiraccounts will not change, and that a parental guarantee from Scarboroughreplaces the parental guarantee from Portman Building Society. This means thatSCIL customers will continue to enjoy the security of the parental guarantee ofa top 20 UK building society. SCIL will be writing to all existing customers inthe next few days. Scarborough is also pleased to confirm that SCIL's existing management team andstaff, headed by Managing Director Stephen Le Poidevin, will continue in theirroles and will be instrumental in the development and expansion of the business. Robin Litten, Scarborough's Finance Director, and Andrew Holmes, OperationsDirector & Secretary, will replace the two Portman Building Society Directors onthe SCIL Board as Non Executive Directors, while Stephen Jones will continue asChairman. SCIL will enhance the Scarborough Group's strategy of growth anddiversification, adding to its existing suite of complementary businesses. Scarborough Chief Executive John Carrier said: 'I am delighted to announce thesuccessful completion of our acquisition of our new offshore company SCIL. 'The future prospects of this business and the offshore market in generalpresent very real opportunities and we are looking forward to supporting theexisting Guernsey based team in developing new products and service offeringswhich will appeal to existing customers and attract new ones. 'The acquisition adds a significant additional strand to our already diversebusiness model and will further enhance the success and profitability of ourGroup, which will benefit customers and members alike.' Stephen Le Poidevin, SCIL's Managing Director, added: 'The offshore arenapresents a raft of opportunities for the development of new products and servicepropositions and, ultimately, expansion into new markets. 'Scarborough has an impressive reputation in the UK and has ambitious plans forsupporting the enhancement of SCIL for the benefit of both existing and newcustomers. This is an exciting time for me and my SCIL team to be at theforefront of these developments'. 20 April 2007 This information is provided by RNS The company news service from the London Stock Exchange