Pepper Money Limited’s Acquisition of 65% Stakes in Stratton Finance Pty Ltd

Gilbert + Tobin has advised Pepper Money Limited on its acquisition of 65% of Stratton Finance Pty Ltd.

Pepper Money Limited (ASX:PPM) has acquired a 65% interest in Stratton Finance Pty Limited for $78 million. 

The acquisition is subject to Foreign Investment Review Board (FIRB) approval and other customary conditions precedent and is anticipated to complete in Q3 CY2022.

The transaction values Stratton at $120 million on a debt free / cash free basis, with the 65% interest acquired by Pepper Money for $78.0 million in cash (subject to customary adjustments), in part funded from a draw down on Pepper Money’s Corporate Debt Facility and in part from existing Pepper Money cash.

Stratton Finance is one of Australia’s leading online direct-to-consumer asset finance broking platforms, with more than 23 years of operating experience, plus strong brand recognition built on trust and transparency.

Pepper Money, founded in 2000, is one of the largest non-bank financial institutions in Australia and New Zealand and listed on the ASX on 25 May 2021.Stratton Finance, founded in 1998, has over 24 years of experience providing insurance for cars, boats, caravans and commercial equipment.

Corporate Advisory Partner Peter Cook (Picture) led the matter for G+T, together with lawyers Mary Brady, Clancy Bradshaw and Maree Casey.

Involved fees earner: Clancy Bradshaw – Gilbert + Tobin; Mary Brady – Gilbert + Tobin; Maree Casey – Gilbert + Tobin; Peter Cook – Gilbert + Tobin;

Law Firms: Gilbert + Tobin;

Clients: Pepper Money Limited;

Sonia Carcano

Author: Sonia Carcano