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21 September, 2017 - 11:18 By Tony Quested

Marshall Leasing to be sold for £42.5m to Bank of Ireland subsidiary

Marshall Motor Holdings

Cambridge based UK retail group Marshall Motor Holdings plc, one of the UK's leading automotive retail groups, is set to sell its wholly-owned leasing segment, Marshall Leasing Limited (MLL), for £42.5 million cash.

The proposed buyer is N.I.I.B Group Limited – which trades as Northridge Finance – a wholly owned subsidiary of Bank of Ireland. The deal hinges on Bank of Ireland receiving regulatory approval from the Financial Conduct Authority.

The disposal will allow Marshall Motor Holdings to focus on its core motor retail business and to continue the group’s successful strategy of driving both organic growth and increasing its UK geographic footprint through targeted acquisitions with existing brand partners.

The net cash proceeds of the disposal will initially be used to reduce existing levels of debt and the parent board believes the deal provides an opportunity to create greater long term value for shareholders.

Marshall Leasing is a nationally recognised and well regarded independent automotive leasing and fleet management provider for UK corporates and has been part of the group since it was established in 1979. It is considered by the board to be a quality business that has performed well over recent years.

The leasing and fleet management market continues to consolidate and the board considers that scale is becoming increasingly important to underpin the capital intensive nature of the business model.

Eight of the top ten UK motor leasing businesses are owned by financial institutions or vehicle manufacturers. The board therefore believes that the future growth of Marshall Leasing is better supported under different ownership and is pleased to have agreed a sale of MLL to Bank of Ireland.

Daksh Gupta, CEO at Marshall Motor Holdings, said: “The strategic disposal of our leasing business is an important step for MMH. It further strengthens our financial position and allows us to remain focused on driving our core retail operations. 

“In a changing and consolidating retail landscape, we see various exciting opportunities ahead which, with the support of our brand partners, we are now even better positioned to exploit.”

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