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Westpac Bank has snapped up non-bank lender RAMS Home Loans Group’s (RAMS) franchise distribution business for $140m, it announced today.
In addition, Westpac will provide up to $2 billion of financing to fund new business and to refinance a proportion of RAMS’ outstanding US XCP (extendible commercial paper) program.
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The acquisition includes the RAMS brand and franchise assets.
This will allow Westpac to operate the RAMS franchise business as an independent sales channel.
The sale of the brand and distribution business is subject to approval at a shareholder meeting planned for late November.
“The transaction provides a new alternative distribution channel and an additional growth option for Westpac,” said Westpac CEO David Morgan.
The RAMS franchise will remain a separate business in Westpac, extending Westpac’s Australian distribution footprint by 10 per cent.
A smooth transition is expected for customers and staff once final approvals are made at the RAMS November shareholder meeting.
