General Capital Limited Expands Its Portfolio with Acquisition of Bridges Financial Services

Highlights:

• Strategic Acquisition: General Capital Limited (NZX: GCL) announces the acquisition of Bridges Financial Services Limited, an insurance premium funding business, through its subsidiary General Finance Limited, aiming to strengthen its market presence in Waikato and the North Island.
• Collaboration with Industry Leaders: The acquisition includes a referral agreement with Bridges Insurance Services Limited, recently purchased by global insurance group Howden, enhancing General Finance's operational capabilities with local expertise and international support.
• Positive Growth Prospects: Despite expecting a positive but not material impact on net profit after tax (NPAT) through March 31, 2025, General Finance anticipates significant growth opportunities from the acquisition, with a focus on expanding its client base and service offerings.

Strategic Acquisition Announcement

General Capital Limited (NZX: GCL) is excited to announce that its wholly owned subsidiary, General Finance Limited, has entered into an agreement to acquire 100% of the shares in Bridges Financial Services Limited (BFSL), an insurance premium funding business based in Waikato. This acquisition marks a significant step in General Capital's growth strategy, which has previously focused on organic expansion.

Strengthening Market Presence

Rewi Bugo, Chairman of General Capital, expressed optimism about the acquisition, stating, "We have grown General Finance organically to date, but we have always been alert to acquisition opportunities. We are pleased General Finance has been able to reach an agreement to purchase BFSL." The addition of BFSL is expected to enhance General Finance's operations in Waikato and throughout the North Island, further solidifying its market presence.

Collaboration with Insurance Partners

Don Hattaway, Chairman of General Finance, highlighted the strategic benefits of the acquisition, noting that BFSL has a referral agreement with Bridges Insurance Services Limited, which was recently acquired by Howden, a global insurance group based in London. The collaboration promises to leverage Howden’s global expertise alongside the local insights and reputation of BFSL's founder, Ron Bridges, who will continue in his role for the next three years.

Positive Growth Outlook

Brent King, Managing Director of General Finance, indicated a positive growth trajectory for the company over the past five years. He noted, "Adding another lending product will allow us to widen our client base," and emphasized that while the immediate impact on net profit after tax (NPAT) will be positive but not material through March 31, 2025, the low overheads and strong cash flow from the new acquisition present significant growth opportunities. The purchase is expected to be finalized by November 1, 2024, as part of the same charging group under the Non-Bank Deposit Takers Act.

At the time of writing, General Capital continues to position itself for long-term success through strategic acquisitions and a focus on expanding its service offerings.

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