Westpac has signed off on the sale of its Vendor Finance business to Angle Finance, a portfolio company of alternative investing group Cerberus Capital Management.
The acquisition of the equipment financier for businesses is expected to result in the transfer of around $500 million of customer loans.
Westpac chief executive of specialist businesses, Jason Yetton said the sale represents the “first transaction of the group’s simplification initiatives” and brings new opportunities for Vendor Finance customers and staff.
Westpac stated given the modest size of the Strategic Alliances (Vendor Finance) portfolio, the sale is expected to have a negligible impact on the major bank’s balance sheet and capital ratios.
The big four bank will continue to retain and manage the remaining CFAL equipment finance business in its business division.
Vendor Finance provides financing for small-ticket business equipment, including telecommunications, office equipment and commercial vehicles.
Completion of the transaction is expected by the end of April next year, with Vendor Finance to be combined with Angle Finance.
Angle Finance chief executive Craig Edwards said the consolidation will present a “great opportunity” to expand.
Cerberus acquired Angle Finance in September last year – with the Westpac deal to be its second acquisition in the region. In 2018, the company also bought Bluestone Mortgages, a specialist mortgage lending and servicing business with operations across Australia, New Zealand and the Philippines.
Cerberus Australia head David McWilliam added: “Since our initial acquisition, Angle Finance and its management team have made great strides in strengthening the business.”
“The combined company will be [well positioned] to build on this momentum and capture opportunities to support its long-term growth.”
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].