Non-Standard Finance Plc said Aug. 3 that it will acquire George Banco Ltd. from its existing shareholders for £53.5 million in cash.
The deal is expected to complete in September.
Non-Standard Finance also said it secured a £175 million six-year loan facility from a group of institutional investors, led by Alcentra Ltd., to fund the acquisition. Part of the funding will also be used to refinance its existing debt facilities and provide additional funding to support future growth.
The same investors also agreed to provide an additional committed facility of up to £50 million. In addition, the group also secured a £35 million revolving credit facility from Royal Bank of Scotland Plc.
George Banco provides guaranteed loans in the U.K., with a total net loan book of approximately £30 million. Non-Standard Finance said it expects the acquisition to boost its earnings in the first full year following completion.