Commercial finance broker COG Financial Services has acquired Club Transport Finance, which trades as Chevron Equipment Finance.

In an all-cash deal worth A$7 million, COG will hold 70 per cent of Chevron, with the company’s founder retaining 30 per cent. COG has an option over the 30 per cent balance.

COG said Chevron specialises in arranging asset finance for commercial clients. Its client base is predominantly SMEs operating in the transport and earthmoving sectors.

A COG subsidiary, QPF Finance Group, is raising $2.8 million of capital to go towards funding the transaction.

COG has grown by acquisition over the years and this year has been no different.

In February it acquired funds management business Equity-One Mortgage Fund Ltd, through its subsidiary Westlawn Finance.

Westlawn paid $24 million in cash for 70 per cent of Equity-One, which operates a contributory mortgage scheme and has around $350 million of funds under management.

Also this year, COG established a $31 million acquisition finance facility with a major bank. It is a revolving facility with a five-year term.

COG chief executive Andrew Bennett said in a statement: “The facility will enable COG to continue its strategy of acquisition for growth by allowing it to acquire additional asset finance businesses to the value of $31 million without the need to raise additional equity.”

COG claims an 18 per cent share of asset finance broking and it is developing a lending division.