Dorchester Pacific buys Oxford Finance
Dorchester Pacific will buy Levin-based loan company Oxford Finance for between $11.3 million and $12.3m.
The NZX-listed finance and insurance company said today the purchase would boost the value of Dorchester Pacific's loan book to close to $90m.
Dorchester Pacific said it expected Oxford Finance to contribute $3m of earnings before interest and tax in the year to March 31, 2015.
Dorchester said it now expected to report a full-year net profit before tax of between $10m and $11m for the 12 months to March 31, 2015 and an annual net profit before tax of at least $14m the 2016 financial year.
The value of Oxford Finance's loan book was more than $50 million.
More than 75 per cent of Oxford Finance's loans were generated through motor vehicle financing, with loans also originating through finance brokers, strategic partnerships with a number of smaller finance companies, and direct lending.
The business had a strong presence in Wellington, Wairarapa, Taranaki, Hawke's Bay, Waikato and Bay of Plenty.
Dorchester Pacific chief executive Paul Byrnes said the purchase was an "excellent fit".
The geographical concentration of Oxford Finance's customer base complemented Dorchester Finance's existing Auckland and Hamilton customer base, Byrnes said.