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An asset finance broking platform is set to be fully owned by the non-bank lender, as it moves to take a 100 per cent stake in the company.
Pepper Money has announced that it will acquire the remaining 35 per cent share in Stratton Finance Pty Limited for a base price of $42 million (subject to customary adjustments for cash and working capital), taking it to full ownership of the asset finance company.
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Pepper had acquired a 65 per cent interest in Stratton in 2022 and had the call option of purchasing the remaining 35 per cent at some point between the first quarter of the calendar year 2024 and the first quarter of 2026.
It has now confirmed that it is exercising that option and will elect to settle the acquisition from existing Pepper Money cash.
Completion of the transaction is expected to be no later than 30 April 2024.
Stratton Finance is one of Australia’s leading online asset finance broking platforms, with more than 23 years of operating experience. It has more than 150 employees supported by a national network of offices (with its head office in Melbourne) and franchises.
Speaking in 2022, Pepper said its move to acquire Stratton would not only provide it with a new and immediate avenue for sustained incremental origination volume for Pepper Money’s asset finance business but also broaden its distribution footprint. This would come through Stratton’s broker base and franchise network and would simultaneously provide the Stratton network with access to all Pepper Money’s products across mortgages, personal loans, and commercial real estate loans.
[Related: Pepper to take majority stake in Stratton Finance]
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