Cullinan Holdings Limited is pleased to announce that it has acquired Chester Finance, a well-established Johannesburg based business specializing in trade finance, from the Chester Finance Group. Chester Finance financial services business focuses primarily on providing finance for inventory purchases.
“The acquisition is aligned with our strategy of expanding Cullinan’s Financial Services Division. Michael Barr, CEO of Cullinan Financial Services, will continue to look for further opportunities to acquire companies or partnerships in the financial services sector, where we are able to utilize synergy, financial resources and expertise to grow acquisitions or partnerships,” says Michael Tollman, CEO of Cullinan Holdings.
Cullinan’s Financial Services Division already includes bridging finance, import finance and facilitation, and other asset and project based finance and Tollman says the acquisition will be an excellent addition. “Chester Finance will contribute towards the division’s expertise and its future growth potential. From a group perspective, the acquisition provides further diversification, whilst at the same time increasing return on funds held.”
The acquisition includes the client base, together with all credit facilities and securities, a portion of the loan book, the key executives and staff and the sophisticated technology solution developed by the business. Funding for the loan book is expected to be provided out of Cullinan's current financial resources. The Company has also agreed a credit line for further expansion of the loan book should this be required. The acquisition is effective from 1 October 2014 and was acquired for an undisclosed sum.
Cullinan Holdings Limited has a September year end and results for the full year are expected to be published on or around 12 December 2014. Full details of the acquisition will be reflected in these results.
To find out more about Cullinan Holdings Limited, please visit our website www.cullinan.co.za