TODAY, retail group Marshall Motor Holdings announced that the company would be selling its leasing division to Belfast-based N.I.I.B. Group Ltd in a deal worth £42.5m.
The proposed sale of Marshall Leasing Ltd (MLL) will be reviewed by the Finance Conduct Authority, and if approved, N.I.I.B, which trades as Northridge Finance, will become the owner of the segment. Northridge Finance is a wholly owned subsidiary of the Bank of Ireland.
Chief executive of Marshall Motor Holdings, Daksh Gupta, said: “The strategic disposal of our leasing business is an important step for Marshall Motor Holdings. It further strengthens our financial position and allows us to remain focused on driving our core retail operations.
“In a changing and consolidating retail landscape, we see various exciting opportunities ahead which, with the support of our brand partners, we are now even better positioned to exploit.
“MLL has been an important part of our group for many years. On behalf of the board, I would like to thank all my leasing colleagues for their significant support and contribution over this period and wish them well for the exciting times ahead under new ownership.”
Marshall Leasing has been part of the group since 1979, when it was formed, and its sale will help the group cut its debt levels, which were reported to be £101.1m as of the end of June this year.
In a statement, Marshall Motor Holdings announced: ‘Eight of the top 10 UK motor leasing businesses are owned by financial institutions or vehicle manufacturers. The board therefore believes that the future growth of Marshall Leasing is better supported under different ownership and is pleased to have agreed a sale of MLL to the Bank of Ireland.
“After completion of the disposal, the group will be focused exclusively on its UK motor retail operations, a segment which the board believes continues to offer attractive opportunities for future growth.”