Deals



ONE-pm plc Acquires Bradgate Business Finance Limited


Posted: 23rd March 2016 08:33

1pm, the AIM listed independent specialist provider of finance facilities to the SME sector, is pleased to announce the acquisition of Bradgate Business Finance Limited ("BBFL") for an aggregate consideration of up to £2.75 million, comprising £2.20 million payable in cash on completion and up to a further £0.55 million in shares over the next three years subject to certain performance targets being achieved.

Key points:

Reasons for the acquisition:

BBFL is a leading independent specialist provider of hard asset finance solutions to a broad range of largely owner-managed businesses within the construction, recycling and road transport sectors. BBFL's core strength is access to a selected network of panel funders whilst also having the ability to act as a principal funder. It is therefore able to provide its clients with a wide range of competitive financing packages with proven sales and underwriting experience and a record of generating high yields and strong returns on capital investment. Business is generated primarily from end-user lessees, but also via key relationships with equipment suppliers who rely heavily on the sector expertise of the management team and their ability to secure funding of their equipment sales. BBFL has a number of established supplier relationships that can be further leveraged.

Commenting on the acquisition, 1pm CEO, Ian Smith said:

"The Board of 1pm is very pleased to be taking this second significant strategic step forward in the current financial year following the successful acquisition of Academy Leasing in August 2015. This transaction is further proof of the Group's intent to build a significant asset finance and business loans group through a combination of strong organic growth and carefully selected acquisitions. The acquisition of BBFL adds the hard assets category, new SME business sectors and valuable management experience to our existing asset finance offering."

Richard Arnold, Managing Director of BBFL said:

"We are delighted to have this opportunity to take Bradgate Business Finance to the next stage in its development. This transaction will enable the business to grow significantly as part of the 1pm plc group, allowing us to join forces with 1pm and Academy to create a strong combined business, whilst continuing to build on the successful foundations we have laid within our own particular sectors of expertise."

Commenting on the acquisition and current trading, Chairman John Newman, added:

"1pm's trading performance in the first nine months of the current financial year, which includes a six month, contribution from Academy Leasing, continues to be strong and in line with management expectations for the financial year ending on 31 May 2016. This latest acquisition will help to enhance the trend of profitable growth delivered over recent years."


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