WesBank buys Carlyle Finance

WesBank, a division of FirstRand Bank, has reached agreement with Julian Hodge Bank to acquire its Carlyle Finance business for an undisclosed sum. Carlyle Finance is valued at having assets worth around £250m and it is believed WesBank paid a premium for the company. The deal is expected to be finalised by July and will see all the existing management team and staff transfer to the South African company. The acquisition creates a sizeable business in the UK motor finance market and the new company has set its sights on becoming a major player through organic growth and acquisition. WesBank is already one of South Africa's largest motor finance providers. With total advances of approximately £7bn, the company is known in the country as the “dealer bank”. Mark Standish, managing director of Carlyle Finance, said: “There is a close alignment between the cultures and business models of the two organisations and both have a burning ambition to be leaders in their elected markets. “The Carlyle story provides hope for an industry that has encountered some difficult times during recent years. “With WesBank behind us, we believe that we will bring huge innovations to the market and increased levels of support to the dealer network,” he said. Standish said the company had built its reputation on building a dealer focussed business and that the approach would not change under the new owners. He claimed the only change would be in the level of resources the company now had to invest. “Our reputation has been built on our dealer-dedicated approach and our absolute commitment to providing dealers with all the necessary tools to succeed in a highly competitive market. This approach will not change,” he added. The FirstRand Group, is a top-10 listed company on the Johannesburg Stock Exchange and it includes one of the major South African high street banks in its portfolio. WesBank also has operations in Australia and a number of African countries.