Banking major Barclays plc (BARC,BCS) announced Friday that Barclays Bank UK PLC has agreed to acquire UK specialist mortgage lender Kensington Mortgage Co. Ltd.
Barclays Bank UK is acquiring the business from companies controlled by funds managed by Blackstone Tactical Opportunities Advisors L.L.C. and funds affiliated with Sixth Street Partners LLC.
Barclays Bank UK has also agreed to acquire a portfolio of UK mortgages consisting primarily of mortgages originated by KMC from October 2021 to completion of the acquisition of KMC.
The total consideration payable by Barclays Bank UK under the deal agreements is expected to be approximately 2.3 billion pounds. The consideration assumes completion of the deal occurs at the beginning of December 2022 and the KMC Mortgage Portfolio comprises approximately 2.0 billion pounds of loans at that date.
The Transaction is subject to regulatory approval and is expected to complete in late fourth quarter or early first quarter, 2023.
Kensington Mortgage provides mortgages via brokers to borrowers with complex incomes. The business has approximately 600 employees and also services mortgages for other parties. KMC generated 65.9 million pounds of income and a pre-tax profit of 0.5 million pounds in the year 2021.
Barclays expects the acquisition to enable it to broaden its product offering and capabilities in the UK mortgage market, extend the number of customers and grow mortgage originations to better utilise strong UK funding base.
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