HITACHI CAPITAL UK TO ACCELERATE BUSINESS FINANCE GROWTH WITH FRANCHISE ACQUISITION
27/06/2018 – Hitachi Capital UK has significantly strengthened its business offering with the acquisition of Franchise Finance Ltd, a specialist financial services provider to the franchising industry.
The transaction boosts Hitachi Capital UK’s lending base to SMEs and franchisees, bringing considerable senior consultancy experience to the Group and helping to build a profitable portfolio within an underserved market. The acquisition also enables Hitachi Capital UK to truly diversify its offering, by utilising Franchise Finance’s expertise in business planning and training within the SME marketplace, to create a new product offering amongst a wider UK audience.
Franchise Finance Ltd has demonstrated considerable strength in educating and training SMEs through its Business Training Academy, which offers workshops focusing on a variety of key business areas. The business operates UK-wide with more than 140 franchisors and their franchisees, showing particular strength in the hotel, leisure, business services, personal services (such as fitness and domiciliary care) and transport sectors. Over the last five years, the company has completed more than 700 deals, worth more than £32m.
The acquisition marks a major move into the franchise industry for Hitachi Capital UK, providing the business with an opportunity to grow in a franchise market, which has seen growth of almost 50% to £15bn in the last decade alone.
Robert Gordon, CEO of Hitachi Capital UK, said: “Hitachi Capital UK has delivered significant organic growth for almost a decade by ensuring we provide current and prospective customers with relevant products and services across our business units.
“Franchise Finance Ltd is a natural fit for Hitachi Capital UK. With a strong market share and a well-established business training offering, the deal provides a real opportunity to enhance our offering to both existing and new customers.
“This acquisition enables us to grow and diversify our business further, reaching new customers within a franchise market that is consistently providing growth opportunities. We’re excited to bring the team into the Hitachi Capital UK group and use their expertise to accelerate our growth within the SME market.”
Stuart Walsh, Managing Director of Franchise Finance Limited, said: “Hitachi Capital UK is a highly respected company, with which we share a common culture of integrity and dedication to excellent customer service. This deal will enable Franchise Finance to further grow the reach and value of the fantastic expertise we have in the franchise market, aiding Hitachi Capital UK’s current and prospective customers with specialist knowledge and funding that could prove crucial to their business or franchise success.”
For more information please contact:
Nicholas Bevan or Graham Reid at Weber Shandwick Manchester
0161 238 9408 / 0161 238 9404
About Hitachi Capital (UK) PLC
Hitachi Capital (UK) PLC is a leading financial services company with over 30 years’ experience providing innovative finance solutions to enable consumers, SMEs, fleet owners, motor dealers and retailers to grow and prosper. Hitachi Capital (UK) PLC has over 1,200 employees, nearly £5bn of assets and over 1 million customers across its five business units; Consumer Finance, Vehicle Solutions, Business Finance, Invoice Finance and European Vendor Solutions.
Hitachi Capital (UK) PLC is a wholly owned subsidiary of Hitachi Capital Corporation, one of Japan’s largest non-bank financial institutions. Hitachi Capital Corporation is an associated company of Hitachi, Ltd. the global manufacturing and technology firm. Manufacturing continues to be a key part of Hitachi Capital (UK) PLC’s DNA, delivering complex products to high levels of customer satisfaction. Its corporate clients include some of the UK’s leading companies such as British Gas, Royal Bank of Scotland, B&Q and John Lewis.
About Franchise Finance
A multi-award-winning specialist organisation providing market-leading services to the franchise sector including arranging finance, business planning, training and business consultancy. Franchise Finance has a success rate in obtaining finance for its clients of greater than 95%, their business plans are highly regarded by lenders and the company’s training courses have helped numerous franchise owners to better manage their franchise businesses.
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