UK merchant banking group Close Brothers has acquired Bluestone Motor Finance (Ireland), a provider of motor finance in Ireland, for an undisclosed sum.
Close Brothers have said that the cash deal to buy the motor finance operation from the Bluestone Group “is aligned with the group’s commitment to Ireland as a strategic market”.
Until last year, Close Brothers had an agreement to provide finance to First Auto Finance, the car finance business of Finance Ireland, the largest nonbank lender in the State.
After a more than decade long contract where Close Brothers supported more than 130,000 customers in Ireland to finance vehicles, the group ceased to service new loan agreements through First Auto Finance from July 2022.
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Seán Kemple, chief executive of Motor UK and Retail Finance Ireland at Close Brothers, said that the group has been “carefully reconsidering” re-entry options to the motor finance market in Ireland.
“Bluestone Motor Finance is the right business. We are impressed with their experienced management team, strong dealer base, leading tech capabilities, and established routes to market ... We’re excited about expanding the Close Brothers brand, our expertise, and our product range, to the Irish market, with products we know customers and dealers want and value,” he said.
Bluestone Motor Finance has originated more than €450 million since inception in 2014, and had loans under management of €132 million at 31st December 2022.
Adrian Sainsbury, chief executive of Close Brothers, said that Bluestone Motor Finance has delivered “impressive growth”. He added that it will complement the group’s motor finance presence in the UK and Ireland, “a strategic growth market for the group”.
Close Brothers Limited, part of Close Brothers Group, has been in the motor finance sector across the UK and Ireland for more than 30 years, under the trading name Close Brothers Motor Finance.
The group’s purchase of Bluestone Motor Finance is expected to be completed in the fourth quarter of this year.
Bluestone Group’s managing director, Peter McGuinness, said they are confident that Bluestone Motor Finance “will continue to flourish” under Close Brothers’ ownership.
“Donal Murphy and his team have built a progressive, market leading business in Ireland, and I would like to wish them well in this exciting new chapter. Post completion, we look forward to continuing our relationship with Bluestone Motor Finance and building a new relationship with Close Brothers via our technology business, Fignum,” he said.
