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AIB to purchase AmCredit

2nd July 2007
By Julia Chan

Allied Irish Banks has signed an agreement to acquire AmCredit, the mortgage finance business of the Baltic-American enterprise fund.

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The business, which has a strong track record in mortgage lending, operates in Latvia, Lithuania, and Estonia. It has 13 outlets and 145 members of staff. At present, it operates as a single product mortgage business.

The acquisition provides the Irish bank with entry into three high-growth market areas underpinned by an experienced workforce, robust systems and processes and an established brand. Allied Irish Bank (AIB) will seek regulatory approval to operate through a branch in each country and, in time, expand the range of banking products sold.

Eugene Sheehy, CEO of AIB, said: "We look forward to working with AmCredit's management and staff in the development of the business in the years ahead. AmCredit gives us an established foothold in the high-growth Baltic market and an opportunity to develop our business in a market contiguous to our Polish operations. We plan to grow its business and to expand the range of banking products sold into these new markets."

The total consideration for the transaction is expected to amount to approximately E40 million and is subject to regulatory approval.

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