CML Group back on the acquisition trail
Receivables finance company CML Group is maintaining its push for growth, announcing its third acquisition in 12 months.CML has entered into a binding agreement with FSA Group to buy its invoice financing subsidiary, 180 Group.CML will pay A$35 million for 180 Group, which has 116 clients and a $30 million book. The combined group will have 348 clients and a $68 million book. Last year CML acquired Cashflow Finance Australia and earlier this year it acquired CashFlow Advantage.CML said 180 Group had a track record of sustainable earnings and the acquisition would be earnings accretive immediately.The company said in a statement to the Australian Securities Exchange: "It is expected that CML will be able to generate greater margins within the acquired 180 loan book. This increase in margins will be driven by introducing CML charge methodologies and value-added services to the 180 book."CML has launched a $5.2 million equity raising to help pay for the acquisition and plans to extend its corporate bond by issuing an additional $15 million to expand its funding capacity.