FinalCut: PNC to Acquire KBC Business Capital, ABL Business in UK
ABF Journal illustrator Jerry Gonzalez depicts the sale of KBC Business Capital to PNC Business Credit, the asset-based lending arm of The PNC Financial Services Group.
The KBC Group reached an agreement to sell KBC Business Capital, the specialist asset-based lending (ABL) division located in the United Kingdom, to PNC Business Credit, the asset-based lending arm of The PNC Financial Services Group. The transaction provides capital relief, though not to a material extent, for KBC and has no impact on its Tier-1 ratio.
KBC Business Capital is a provider of asset-based lending solutions to UK companies across a broad range of sectors. It has 21 staff operating from Haywards Heath and London, and four offices throughout the UK.
Luc Popelier, CEO of KBC Group’s Market Activities said, “The agreement is another step in KBC’s strategy of refocusing its Merchant Banking Business Unit. With this divestment, we are strengthening the group’s focus on its core banc assurance markets and know-how. We are convinced that new leadership will enable this profitable business to grow, while securing the future of its staff and maintaining excellent customer service levels.”
Paul Beveridge, managing director of KBC Business Capital continued, “We are very pleased to join PNC as it will ensure our customers and staff benefit from being part of one of the U.S.’ leading financial services companies. The agreement with PNC will give us the possibility to develop our activities further, building on the strong market position we have built up over the years and the know-how and scale available within PNC.”
In a statement obtained by ABF Journal, Paul Schneider, executive vice president and chief operating officer for PNC Business Credit said, “The combination of PNC and KBC Business Capital unites leading asset-based lending expertise from two continents while retaining a local presence and knowledge of the UK business community and economic challenges. Our commercial customers do business outside of the U.S. This acquisition helps us to meet existing customer needs and to leverage middle-market opportunities throughout the UK.”