Pepper Money takes 65% of Strattons Finance
Non-bank lender, Pepper Money has moved to acquire 65% of online asset finance broker, Stratton Finance.
Pepper announced the transaction to the Australian Securities Exchange (ASX) today valuing it at $78 million.
It said the transaction valued Stratton at $120 million on a debt free, cash free basis with the $78 million in cash to be funded from a draw down on Pepper Money’s Corporate Debt Facility and in part from existing Pepper Money cash.
The announcement said the parties had also entered into a Put and Call Option in relation to the remaining 35% stake in Stratton exercisable from the first quarter of 2024 through to the first quarter of 2026 with a base price of $42 million indexed on Statton’s performance.
The ASX announcement said the acquisition would provide a range of strategic benefits for Pepper Money’s shareholders including delivering a new and immediate avenue for sustained incremental origination volume for Pepper Money’s Asset Finance business and broadening Pepper Money’s distribution footprint.
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