About us
Bluestone announces the acquisition of Close Credit Management
22 September 2011
Bluestone Group, a provider of capital and asset management services, announced today the acquisition of UK portfolio management business Close Credit Management Limited ('CCM'). Bluestone has also recently completed the financing of a 40 site residential development in New Zealand. These transactions are in line with Bluestone’s strategy of acquiring consumer assets and related operating platforms, and investing in and providing asset management expertise to these companies and portfolios.
Bluestone sees significant growth potential in Close Credit Management. The business has a track-record stretching back over 40 years and a contingent portfolio management business which is well positioned in the UK consumer, commercial and public sector markets. The business will be re-branded Bluestone Credit Management, and will focus on increasing its assets under management, broadening the range of services offered to the UK market as well as looking for strategic opportunities to expand within the industry.
CCM manages over 170,000 customer accounts and was acquired from Close Brothers Group plc for an undisclosed amount. In 2010, CCM generated revenues of £6.1m and net earnings of £948k and the business will increase Bluestone’s European headcount by approximately 165. It will continue to operate from its offices in Sheffield.
Commenting on the transaction, Bluestone’s Executive Chairman and acting CEO of CCM Alistair Jeffery, said "CCM has a unique position in the UK consumer finance market, with particular strengths in managing auto, equipment and commercial receivables. The acquisition represents an attractive opportunity to expand our footprint in the UK, and combine Bluestone's technical and capital management skills with CCM's strong management team and operations", he said.
Bluestone was advised by Nabarro LLP's Sheffield office.
Bluestone's expansion was further boosted in August, 2011 when the business supported the acquisition of the Bendemeer residential development in New Zealand. Bendemeer is the largest asset sold by PwC in their capacity as receivers of Strategic Finance Limited. In this transaction, Bluestone provided a £3.3m mezzanine finance and working capital facility to the acquisition vehicle and has also been appointed as asset manager to the project. Bluestone will oversee the repositioning of the development and staged sale of the properties over the medium term.
Bluestone reported a 25% increase in net profit to A$8.1m (£5.3m) for the year ended June, 2011 year, with net assets of A$30.5m (£19.8m).
About Bluestone
Bluestone was established in 2000 as a residential mortgage lender. The business has subsequently expanded into commercial lending and equity release products, loan servicing and asset management, and now operates from offices in the UK, Spain, Australia and New Zealand. Bluestone has provided over £3 billion of loans to over 20,000 Australians and New Zealanders, and currently manages a portfolio of approximately £750m in Australia and New Zealand.
Bluestone is owned by a number of private and institutional shareholders including Macquarie Bank and Lloyds International. In December 2010, as part of its expansion strategy Bluestone raised A$10m (£6.5m) of new equity from Macquarie Bank. At the same time corporate debt of approx. £20m was refinanced to 2014.
Bluestone established its UK subsidiary early 2009 with the Spanish office opening in 2011 to take advantage of the emerging credit opportunities in Europe. Since 2009 the company has considered a number of transactions in a range of European countries, working with a variety of institutional capital partners. In addition, the business has adapted its loan servicing system to interface with Deutsche Bank's European clearing network, and established the capability to bring its asset management skills into Europe.
Further information on Close Credit Management can be found at www.closecm.co.uk and additional information on the Bendemeer residential development can be found at www.bendemeer.co.nz.
