SYDNEY: Australia’s biggest investment bank, the Macquarie Group, said on Thursday that it would buy the second-biggest auto finance company in its home market, Esanda Dealer Finance, from the Australia and New Zealand Banking Group for 8.2 billion Australian dollars, or $5.9 billion..
Macquarie, based in Sydney, topped several international and domestic bidders for the 62-year-old Esanda business with its offer. Participating in the five-month auction were the American private equity giants Blackstone Group, Carlyle Group, Kohlberg Kravis Roberts and TPG.
“This acquisition will represent a continuation of Macquarie’s growth in annuity-style businesses,” Macquarie’s chief executive, Nicholas Moore, said in a news release. “The portfolio is in a market which Macquarie has significant expertise and has successfully integrated similar acquisitions, such as GMAC and Ford portfolios.”
Esanda will become part of Macquarie Leasing, the automotive and equipment financing unit of the investment bank’s corporate and asset finance group. Macquarie Leasing will almost double its total motor vehicle finance portfolio to 17 billion dollars from 9 billion dollars.
The purchase price of the transaction represents 1.1 times Esanda’s net lending assets. ANZ, based in Melbourne and one of Australia’s four largest commercial banks, will earn about 100 million dollars on the sale.
Macquarie said it would pay for the acquisition with its own funds, third-party financing and a share sale of 400 million-dollars. The company declined to give further details. Deutsche Bank advised ANZ on the sale of Esanda. Esanda’s portfolio includes net lending assets worth 7.8 billion dollars. The Westpac Banking Corporation runs Australia’s biggest auto finance business.
