Gilbert + Tobin has advised Pepper Money Limited (Pepper Money) on its acquisition of 65% of Stratton Finance Pty Ltd (Stratton)

Gilbert + Tobin has advised Pepper Money on its acquisition of 65% of Stratton. Pepper Money paid ~$78 million for the 65% majority interest in Stratton valuing Stratton at $120 million.

Pepper Money, founded in 2000, is one of the largest non-bank financial institutions in Australia and New Zealand and listed on the ASX on 25 May 2021.Stratton Finance, founded in 1998, has over 24 years of experience providing insurance for cars, boats, caravans and commercial equipment.

Pepper Money today acquired a 65% majority stake in Stratton Finance for ~$78 million.  The parties also entered into a Put and Call Option deed for the remaining 35%.  The base purchase price for the remaining 35% interest is $42 million which is indexed based on Stratton Finance’s performance in the period up to exercise of the option.  The transaction values Stratton Finance at $120 million on a cash free / debt free basis.

Corporate Advisory partner Peter Cook led the matter for G+T, together with lawyers Mary Brady, Clancy Bradshaw and Maree Casey.

Speaking of the transaction, Peter said “it was a pleasure to work along-side the exceptional Pepper Money team on the majority acquisition of Stratton Finance.  This is Pepper Money’s first acquisition post-listing on the ASX in May last year and key strategic milestone for the company. We were honoured to have advised Pepper Money on its IPO and to continue to work with Pepper Money as it continues its life as listed company."