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Pepper Money advised on 65% acquisition of Stratton Finance
Gilbert + Tobin (G+T) has advised Pepper Money on its 65 per cent acquisition of Stratton Finance (Stratton).
Jess Feyder
Firm: G+T (Pepper Money Limited).
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Value: $78 million
Deal: G+T has advised Pepper Money on its $78 million payment for a 65 per cent majority acquisition of Stratton.
Area: Corporate
Key players: The G+T team was led by corporate advisory partner Peter Cook, along with lawyers Mary Brady, Clancy Bradshaw and Maree Casey.
Deal significance: Pepper Money acquired a majority stake in Stratton, with a Put and Call Option deed for the remaining 35 per cent, which it can acquire at any time for an agreed base purchase price of $42 million.
For the acquisition of the remaining 35 per cent, the final price will be indexed based on Stratton’s performance in the period preceding Pepper Money’s right to exercise the option.
Pepper Money is one of the largest non-bank financial institutions operating in Australia and New Zealand. This was their first acquisition post-listing on the ASX in May last year and was noted by Mr Cook as “a key strategic milestone for the company.”
Stratton has over 24 years of experience providing insurance for cars, boats, caravans and commercial equipment, and was valued at $120 million by Pepper Money and the G+T team.
Mr Cook commented on the transaction: “It was a pleasure to work along-side the exceptional Pepper Money team.
“We were honoured to have advised Pepper Money on its IPO and to continue to work with Pepper Money as it continues its life as a listed company.”
