Independent motor and asset finance provider
Private & Commercial Finance (P&C) has acquired a £6m motor
finance receivables portfolio from North Herts Credit Company
(NHCC), for a consideration of £4.5m in cash.
The AIM-quoted finance house expects to add
£2.4m to its turnover in 2012 as a result of picking up the
portfolio, which comprises some 2,300 hire purchase contracts.
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Most of the acquired paper is due to mature
within the next 24 months, while the portfolio will be fully wound
down within four years. While P&C’s motor finance business is
almost exclusively broker-introduced, around 70% of the new
portfolio represents business introduced by dealers in NHCC’s area
of operation in Bedford, Hertfordshire and Lincolnshire.
After NHHC found itself short of wholesale
bank funding to support consumer lending, the regional lender wrote
almost no business after September last year, and began actively
seeking a potential buyer.
The deal increases P&C’s portfolio – which
includes both consumer motor finance and business asset finance
receivables – to £110m.
P&C has also taken on three staff from
NHCC as part of the agreement.
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By GlobalDataScott Maybury, CEO of P&C, commented:
“This transaction, which is earnings-enhancing, is another step in
our strategy to actively grow the Group’s portfolio. We are on the
lookout for future acquisitions and ideally these would be of a
comparable size and for leasing or hire purchase assets suitable
for our business finance division.”
