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Moneybarn bought for £120m

Moneybarn, the Petersfield-based subprime car finance specialist owned by Duncton Group, has been acquired by Provident Financial Group in a deal worth £120 million in cash to shareholders.

The deal adds Moneybarn into a network of lending platforms that includes consumer loans and credit cards and will help the car finance company to extend its business to more customers.

The business offers secured car loans, predominantly through conditional sale agreements.

In a statement Provident Financial said the management of Moneybarn, led by Peter Minter, will be retained under the new ownership. They will report directly into Peter Crook, group chief executive of Provident Financial.

"The acquisition provides an exciting opportunity to create a third leg of earnings that complements the organic growth opportunities available to the group," said Crook.

For the year ended December 31, 2013, Moneybarn reported profit before tax of £5.5m, gross assets of £151.6m and net receivables of £128.5m. The purchase price is therefore 22 times Moneybarn's last reported annual profit.

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