McMillan Shakespeare moves deeper into auto finance

John Kavanagh
Remuneration services and fleet leasing specialist McMillan Shakespeare has followed up its acquisition of the automotive finance company Presidian earlier this year with news that it will buy the vehicle and leisure goods finance specialist United Financial Services.

McMillan will pay A$42 million for United Financial Services, United Financial Services Network and United Financial Services (Queensland). The transaction is scheduled to be completed on July 31.

UFS is an originator of consumer and commercial finance and insurance for vehicles and leisure goods. It has 1900 dealers and last year generated around $370 million of loans and $14 million of insurance premiums. Its EBITDA in 2014 was $4.9 million.

In February McMillan acquired the automotive industry finance company Presidian. It paid $115 million for the business, which had 2013/14 EBITDA of $12.2 million.

McMillan Shakespeare chief executive Mike Salisbury said in a statement that the vehicle finance market was highly fragmented, providing an opportunity for a "player of scale".