Add-on Acquisition • Financial Services

MBNA Acquires Premium Credit

On January 4, 2004, MBNA acquired financial services company Premium Credit from Epiris and Motion Equity Partners

Acquisition Context
  • This is MBNA’s 1st transaction in the Financial Services sector.
  • This is MBNA’s 1st transaction in the United Kingdom.
Investment Fate
  • Premium Credit was divested to a financial buyer in 2012 for 900M GBP.
  • Premium Credit was divested to a strategic buyer in 2012 for 900M GBP.
  • Premium Credit was sold to a consortium of financial buyers in 2015 for 462M GBP.
  • Premium Credit was sold to a consortium of financial buyers in 2022.

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M&A Deal Summary

Date January 4, 2004
Target Premium Credit
Sector Financial Services
Buyer(s) MBNA
Sellers(s) Epiris
Motion Equity Partners
Deal Type Add-on Acquisition

Target Company

Premium Credit

Surrey, United Kingdom
Premium Credit is a provider of premium finance for commercial and retail insurance products. PCL’s products are a key source of funding for consumers and smaller businesses in the purchase of often mandatory products, such as motor, home or fire insurance. The company also provides financing for the payment of annual fees such as membership subscriptions, professional fees, commercial service charges and school fees. Premium Credit was founded in 1988 and is based in Surrey, United Kingdom.
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Buyer Overview 1

Buyer

MBNA

Chester, United Kingdom

Category Company
Founded 1993
Sector Financial Services
DESCRIPTION

MBNA is a UK credit card business with a high quality customer base founded upon sound underwriting principles and credit management, which aligns well with the Group’s strategy to deliver sustainable growth through a multi-brand strategy. The MBNA brand will be maintained as a challenger brand further enhancing our customer offering. MBNA’s diversified distribution model, along with its data analytics capability, digital strength and well-recognised brand, will be complementary to the Group’s existing capabilities and provides further opportunities for growth and delivering excellent customer service.


Deal Context for Buyer #
Overall 1 of 1
Sector: Financial Services 1 of 1
Type: Add-on Acquisition 1 of 1
Country: United Kingdom 1 of 1
Year: 2004 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-11-11 Premium Credit

Surrey, United Kingdom

Premium Credit is a provider of premium finance for commercial and retail insurance products. PCL’s products are a key source of funding for consumers and smaller businesses in the purchase of often mandatory products, such as motor, home or fire insurance. The company also provides financing for the payment of annual fees such as membership subscriptions, professional fees, commercial service charges and school fees. Premium Credit was founded in 1988 and is based in Surrey, United Kingdom.

Sell £900M

Seller Profiles 2

SELLER

Epiris

London, United Kingdom

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1976
PE ASSETS 1.5B GBP
Size Large
Type Sector Agnostic
DESCRIPTION

Electra Partners is a UK-based private equity firm focused on buyouts, co-investments, secondary fund purchases, and debt investing. The Firm's direct investing group looks to make majority or minority investments of £50 to £250 million in deals valued up to £500 million. Electra was formed in 1976 and is based in London.


Deal Context for Seller #
Overall 13 of 51
Sector: Financial Services 1 of 3
Type: Add-on Acquisition 3 of 17
Country: United Kingdom 12 of 41
Year: 2004 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-09-01 William Cook Holdings

Sheffield, United Kingdom

William Cook is an engineering Company. It started as a steel casting manufacturer and steel castings still form the basis of 99% of William Cook’s products.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-03-01 BDR Thermea Group B.V.

Apeldoorn, Netherlands

BDR Thermea is a significant manufacturer of heating products and is a supplier of domestic boilers.

Buy £640M
SELLER

Motion Equity Partners

Paris, France

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2001
PE ASSETS 1.0B EUR
Size Large
Type Sector Agnostic
DESCRIPTION

Motion Equity Partners is a European private equity firm that targets large buyouts and turnaround situations valued up to €300 million. Broad areas of interest include consumer (leisure, retail, household and consumer goods, food/beverages), industrial (building materials, automotive, manufacturing, chemicals), business services (outsourced services, logistics and transportation, facilities management), and healthcare services and equipment. Motion prefers opportunities located in France, the UK, Germany, and Italy and looks to commit €20 to €80 per transaction. Motion Equity Partners was established in 2001 and is headquartered in Paris.


Deal Context for Seller #
Overall 6 of 32
Sector: Financial Services 1 of 1
Type: Add-on Acquisition 4 of 17
Country: United Kingdom 5 of 13
Year: 2004 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2003-01-01 Gardiner Groupe Europe SAS

Paris, France

Gardiner Groupe Europe SAS is a provider of distribution of safety products.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2004-02-01 Aliplast NV

Treviso, Belgium

Aliplast NV is a provider of aluminium systems for use in conservatories, windows and doors. Its strategy is built around vertical integration with design, extrusion, painting and thermal insulation of aluminium profiles on the same site. Aliplast was founded in 1982 and is based in Treviso, Belgium.

Buy €203M