Lending bank Shawbrook has acquired Singers Asset Finance, more than tripling its loan book size, in a strategic bid to extend its customer base.
Although Shawbrook declined to disclose the worth of the acquisition, it did reveal that the size of its loan book increased from £150million to £500million after the deal was made.
The takeover will see Shawbrook, which prior to buying Singers had specialised in savings and loans for mortgage products, enter the asset finance market with Singers established client base.
The companies now have a combined headcount of 180 and a combined customer base of 25,000. Shawbrook also states that it aims to achieve over 700million in loan on its books by the end of 2012, as well as £40million a month in lending.
The acquisition gains newcomer Shawbrook the experience and recognition built up by Singers, which has provided corporate and healthcare asset finance since 1994.
Sir George Mathewson, chairman of Shawbrook Bank said: By joining forces we will be extending our offer to SMEs and giving customers access to the experience and knowledge within both of our specialist lending teams.
Since we launched Shawbrook Bank we have seen huge demands for loans from SMEs, and by adding asset finance to our lending offer we can help even more small businesses to grow.
Despite its claim to focus on lending to small businesses, Shawbrook joined HSBC in refusing to enter the governments £20bn credit easing scheme, designed to make it easier for small firms (turnover of less than £50 million) to get unsecured loans – and Shawbrook made it clear to Leasing Life that it has no intentions to do so in the near future.
Chairman and chief executive of Singers, Richard Pyman, said: We knew from the outset that Shawbrook would be a natural match for Singers. Both businesses are focused on making it easier and more straightforward for SMEs to borrow, and we are united in our desire to provide traditional straightforward lending.