Bank of Ireland has bought Burdale Financial Holdings, a UK based comprehensive asset based lender, for €71m. The company is a majority owned subsidiary of Wachovia Corporation.
Bank of Ireland said the acquisition is consistent with its strategy to create more growth platforms in its international business. The bank said the deal will provide it with a leading presence in the fast growing segment of the UK corporate lending market.
Based in London, Burdale has a workforce of 30.
The acquisition is expected to be complete by early January and will be funded from internal resources. The business will be located within Bank of Ireland's Wholesale Financial Services Division.
'The acquisition of Burdale tangible demonstrates the strategic priority we attach to growing our portfolio of niche skill based businesses internationally,' commented BoI Group Chief Executive Brian Goggin.
'Burdale represents an excellent fit with out existing specialised international financing platform within our Wholesale Financial Services division,' he added.
Comprehensive Asset Based Lending is senior debt provided and secured against all assets of a business including stock, debtors, land and buildings and plant and machinery. It is a source of funding for MBOs, MBIs, re-financings, turnarounds or acquisitions. While still a relatively new product in the UK, it is well established in the US.
