UK merchant bank Close Brothers Group PLC (LSE:CBG) said today that it has agreed to buy Irish car finance provider Bluestone Motor Finance, which will operate as a bolt-on to its existing motor finance business.
The FTSE 250-listed group paid an undisclosed cash sum for the Irish motor finance business, which will add to its existing car finance provider Close Brothers Limited.
Analysts at investment bank Peel Hunt said that while being "strategically sensible", the acquisition is not financially material and has "limited shorter-term financial implications", recommending to 'hold' its shares.
Close Brothers’ group chief executive Adrian Sainsbury said: “Bluestone Motor Finance has delivered impressive growth and will complement our Motor Finance presence in the UK and Ireland, a strategic growth market for the group.”
Bluestone Motor Finance managed €132 million of loans across its loan book at the end of 2022.
Close Brothers’ existing 30-year-old motor finance business operates in the UK and Ireland under the trading monicker, Close Brothers Motor Finance, and has partnered with more than 8,000 motor dealers to help finance new and used cars, motorbikes and light commercial vehicles.