Auckland, 11 September 2017
THE WAREHOUSE GROUP LIMITED
The Warehouse Group confirms sale of financial services business
The Board of The Warehouse Group has confirmed the sale of its financial
services business, The Warehouse Group Financial Services, to Finance Now, a
subsidiary of SBS Bank, for $18M. The sale will be completed today.
The sale expands the existing positive working relationship between The
Warehouse Group and Finance Now, and enables The Warehouse Group to continue
to offer branded financial services to its customers, supported by Finance
Now.
Nick Grayston, CEO of The Warehouse Group, said both parties were looking
forward to continuing to work together.
"The Warehouse Group Financial Services will remain as a business and
continue to provide financial products and services to customers of the wider
Group.
"We have a dedicated team to support the transition, who will work closely
with both The Warehouse Group Financial Services and Finance Now to deliver
seamless customer experience."
Phil Ellison, CEO of Finance Now, said he was pleased to be able to partner
with The Warehouse Group, an organisation with similar values to that of SBS
Bank, Finance Now''s parent company.
"To partner with another successful Kiwi-owned company with shared values
around outstanding customer service and contributing to New Zealand
communities is fantastic.
"We are looking forward to working even more closely with the Warehouse Group
to further enhance the access and range of financial solutions they can offer
their customers."
Joan Withers, Chair of The Warehouse Group, said the transaction would enable
The Warehouse Group to focus its capital and people resources on the
transformation of its retail business.
"This is our current top priority and will remain so over the next few
years."
The purchase price is expected to result in a non-cash impairment of software
assets of approximately $16M in the FY17 financial results.
Diners Club New Zealand remains under the ownership of The Warehouse Group.
Ends.
For media enquiries, please contact Julia Morton, Head of Media and PR 021
875 388
End CA:00306998 For:WHS Type:TRANSACT Time:2017-09-11 09:30:15