Bank of Queensland (BOQ) has completed the purchase of CIT Group Australia and CIT Group New Zealand (CIT Australia and New Zealand), paying a combined total for purchase consideration and refinance of debt of $475m.
BOQ intends to operate the CIT Australia and New Zealand business as a stand alone entity, which will be re-branded over a transition period to the BOQ brand.
Keith Rodwell will continue to lead the CIT Australia and New Zealand business under BOQ’s ownership.
According to BOQ, currently it has a successful equipment finance book of approximately $3.4bn and the acquisition of CIT Australia and New Zealand represents roughly 15% of this book.
David Liddy, managing director of BOQ, said: “It is a true bolt-on acquisition, in line with our strategy of expanding in to higher margin businesses that complement our existing network and is a natural addition to our existing, successful equipment finance business. We expect the acquisition to be earnings per share accretive immediately from completion; however it will not have a material impact on our fiscal year 2010 results.”