McMillan Shakespeare Limited
(ASX:MMS) is set to buy insurance and finance provider Presidian for $115 million in a bid to expand its automotive presence.
The salary packaging company says the private company is an independent provider of finance, warranty and insurance products to the car industry.
In the 2014 financial year it posted EBITDA of $12.2 million.
CEO Mike Salisbury says the deal represents a complementary extension to the company’s existing Australia wide network and auto value chain competencies in the new car market.
Key executives, including the CEO of Presidian Jamie Johnson, will remain with the company post acquisition.
And it will be funded by a combination of cash reserves, existing debt facilities and new equity.
McMillan Shakespeare reported a net profit of $54.9 million in the 2014 financial year.
