Global law firm Norton Rose Fulbright has advised ASX listed company Thorn Group Limited on the sale of its trade and debtor finance division to CML Group.
CML Group have acquired the Trade and Debtor Finance Division, which trades as 1stCash Pty Ltd, for a total consideration of AU$39 million.
The Norton Rose Fulbright team, led by partner Ben Smits, advised on the legal aspects of the competitive sale process, deal structuring, negotiation of sale transaction documents and completion of the transaction.
In order to achieve best market price for the division the sale was initiated through a tender process and the division was sold at a premium. The sale is expected to complete on or around 26 February 2018.
Thorn, owner of Radio Rentals, is a leading financial services provider in Australia, offering a broad range of financial solutions to consumer and commercial markets.
CML Group Limited, owner of Cashflow Finance, is an ASX listed provider of debtor finance and trade finance.
Norton Rose Fulbright corporate partner Ben Smits commented:
"It was great to help drive such a competitive and efficient process from commencement to completion in two months. We are very pleased to have worked closely with the Thorn team again on this well-timed strategic mandate.”
Peter Forsberg, acting chief executive officer at Thorn Group, commented:
“With increasing volume and activities in the Australian secondary loan market, it is expected that the market remains attractive for a range of sectors and asset classes. This transaction reinforces the current trend, driven by medium and large enterprises converting balance sheet debt for short term cash in-flows. We are delighted to again have the support of Norton Rose Fulbright on this transaction. ”
The team was led by Ben Smits and was supported by corporate senior associate Vianna Shing and associate Shanil Lal, and banking and finance special counsel Robert Murphy.
Norton Rose Fulbright previously worked with Thorn Group on its acquisition of Cash Resources Australia, and the sale of their consumer finance and credit and receivables management divisions.