Arbuthnot Banking Group PLC Acquisition of Asset Alliance (2187I)
10 Dicembre 2020 - 10:32AM
UK Regulatory
TIDMARBB
RNS Number : 2187I
Arbuthnot Banking Group PLC
10 December 2020
FOR IMMEDIATE RELEASE
10 December 2020
Arbuthnot Banking Group PLC
Acquisition of Asset Alliance
Arbuthnot Banking Group PLC ("Arbuthnot" or the "Group") today
announces that its subsidiary Arbuthnot Latham ("AL" or the "Bank")
has agreed the purchase of the entire issued share capital of Asset
Alliance Group Holdings Limited ("Asset Alliance")
Asset Alliance provides vehicle finance and related services,
predominantly in the truck & trailer and bus & coach
markets. Operating from five locations, it is the UK's leading
independent end-to-end specialist in commercial vehicle financing
and has over 4000 vehicles under management. As at 31 August 2020
Asset Alliance had assets for lease with a net book value of
approximately GBP150 million.
The consideration is based on an agreed discount to the tangible
net assets of Asset Alliance at completion, after adjusting for the
fair value of the assets available for lease. The consideration is
expected to be approximately GBP4.1 million.
The shares are being purchased from CS Capital Partners III LP
("Cabot Square") and a small number of other investors which
include the senior management of Asset Alliance.
Completion will take place after, inter alia, regulatory change
of control approval is received. This is expected to be within
three months.
The third-party funding of Asset Alliance at completion, which
is associated with the assets available for lease, and includes a
revolving credit facility of approximately GBP140 million, is
expected to be refinanced by Arbuthnot soon after the completion
date.
Asset Alliance had adjusted net assets of GBP8.1 million as at
31 August 2020. It reported an EBITDA of approximately GBP7.2
million for 2019 and is expecting to record GBP2.3 million for the
same measure in 2020. This is anticipated to increase to GBP5.5
million in 2021. In addition, this acquisition should generate a
net negative goodwill accounting adjustment of GBP1.7 million.
Therefore, the transaction is expected to be earnings accretive to
the Group in the year ending 31 December 2021. The Group
anticipates Asset Alliance transaction costs of approximately
GBP0.8 million will be recognised in its 2020 trading results.
The consideration for the purchase of Asset Alliance's share
capital and the refinancing of the third-party funding will be
satisfied by cash from the Group's own resources.
Willie Paterson, the CEO of Asset Alliance, and his management
team, who collectively have many years of experience within the
leasing and banking industries will remain in place to help deliver
the business's growth plans.
Sir Henry Angest Chairman and CEO of the Group said:
"We are delighted to welcome Willie and his team to the Group.
This acquisition of Asset Alliance is complementary to our strategy
of diversification and developing businesses in the specialist
commercial finance sectors. Their experienced management team have
built the foundations for future growth and now that it will no
longer be constrained by third party funding limits, I look forward
to Arbuthnot enabling this business to grow and prosper in the
future."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU No. 596/2014). Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
The Directors of the Company accept responsibility for the
contents of this announcement.
Enquiries:
Arbuthnot Banking Group
Sir Henry Angest, Chairman and Chief Executive
Andrew Salmon, Group Chief Operating Officer
James Cobb, Group Finance Director 0207 012 2400
Grant Thornton UK LLP (Nominated Adviser and AQSE
Exchange Corporate Adviser)
Colin Aaronson
Samantha Harrison
Seamus Fricker 020 7383 5100
Numis Securities Ltd (Joint Broker)
Stephen Westgate 0207 260 1000
Shore Capital (Joint Broker)
Hugh Morgan
Daniel Bush 020 7408 4090
Maitland/AMO
Neil Bennett
Sam Cartwright 020 7379 5151
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACQFZMMZLGMGGZG
(END) Dow Jones Newswires
December 10, 2020 04:32 ET (09:32 GMT)
Grafico Azioni Arbuthnot Banking (LSE:ARBB)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Arbuthnot Banking (LSE:ARBB)
Storico
Da Apr 2023 a Apr 2024