Resimac to buy $150m commercial loan portfolio from Thorn Group
SYDNEY, AUSTRALIA: Resimac Group Ltd, an ASX-listed non-bank lender, has announced that it has agreed to buy a $150 million portfolio of commercial asset finance loan receivables from Thorn Group Ltd, an ASX-listed consumer leasing and finance company.
The deal, announced on Tuesday, supports the strategic growth objectives of Resimac’s Asset Finance division, which provides loans for equipment, vehicles and working capital to small and medium-sized businesses.
The transaction is subject to Thorn shareholder approval, with completion expected in late August 2023.
Resimac said the acquisition will enhance its product offering and diversify its funding sources. It said it has a track record of successful business and portfolio acquisitions over time, such as the purchase of Positive Group in 2019 and the acquisition of a $300 million portfolio of prime residential mortgages from Pepper Money in 2020.
Thorn said the sale is part of its strategy to simplify its business and focus on its core consumer leasing operations. It said it will use the proceeds from the sale to repay debt and strengthen its balance sheet.
Scott McWilliam, Chief Executive Officer of Resimac, commented: “We are pleased to announce this transaction, which supports our strategic growth objectives and enhances our product offering in the commercial asset finance market. We look forward to welcoming Thorn’s customers and providing them with our high-quality service and solutions. This transaction demonstrates our ability to identify and execute value-accretive opportunities in the market.”
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