McMillan Shakespeare enters consumer auto car finance market

Remuneration services and fleet leasing specialist McMillan Shakespeare has moved into the consumer finance market, with the acquisition of the automotive industry finance company Presidian.

McMillan Shakespeare will pay A$115 million for Presidian, whose pro forma earnings (before interest, tax, depreciation and amortization) in 2013/14 were $12.2 million.

Presidian provides finance, warranty and insurance products to the automotive industry, specialising in the used car segment. It has a distribution network of car dealers, finance brokers and 14 retail branches trading under the name Money Now.

McMillan Shakespeare chief executive Mike Salisbury said in a statement: "The acquisition firmly establishes MMS in the consumer finance space for new and used motor vehicles. The acquisition represents a complementary extension of MMS's existing network and auto value chain competencies in the new car market."

Salisbury said the vehicle finance market was highly fragmented, providing an opportunity for a "player of scale".

He said the acquisition would be earnings accretive in the current financial year.