Fri, 15 Aug 2014 | MERGER
Car finance business Moneybarn is set to change ownership after a £120 million deal was agreed with buyer Provident Financial.
Home credit lender Provident Financial is to buy vehicle finance business Duncton Group in its entirety. Its subsidiaries operate under the Moneybarn brand.
Since being set up in 1992, Moneybarn has offered car finance, working through brokers and via independent car dealers and its own website direct to its customers who might struggle to win credit from traditional banks.
Headed by Peter Minter, Moneybarn will stay under the current management team once the deal is finished, and will report to Provident’s group chief executive Peter Crook.
Moneybarn recorded audited pre-tax profits of £5.5 million and gross assets of £151.6 million for the year ending 31 December 2013.
For Provident the acquisition will allow it expand its product offering to existing clients, and create a new strain of income in line with its current growth opportunities.
Provident said: “Moneybarn’s origination has been muted recently, given funding constraints, and this leaves scope for growth going forward.
“The board believes that the business is highly scalable, given the strength of broker relationships and market leading credit decisioning, combined with the strength of the group’s balance sheet.”
Former HBOS boss James Crosby, who had been named as instrumental in the banking group’s failure, is set to pocket £850,000 from the sale.
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