The acquisition of Capital Finance Australia (CFA) and BOS International Australia (BOSI) will be fully funded from Westpac’s internal resources, according to a statement released today.
CFA has total receivables of $6.8 billion, divided into a motor vehicle finance book of $3.9 billion and an equipment finance book of $2.9 billion.
The corporate loan book held by BOSI has an asset base of $1.6 billion.
The transaction is expected to deliver approximately $100 million in additional cash earnings for Westpac by financial year 2015, according to the statement.
Westpac chief executive Gail Kelly described the acquisition as a “value-creating, straight forward transaction that makes both commercial and strategic sense”.
“Importantly, the transaction meets our strict acquisition criteria and shareholders will see a benefit to earnings per share in financial year 2014,” she said.
The deal is not subject to regulatory approvals, and is expected to be completed on 31 December 2013.
Westpac has alerted the Australian Competition and Consumer Commission of the transaction and is "co-operating with the Commission's informal merger process".
