Wells Fargo Bank has agreed to acquire Burdale Financial Holdings (Burdale) and the portfolio of Burdale Capital Finance from Bank of Ireland for EUR690m to expand its international commercial finance capabilities.
London-based Burdale is a provider of asset-based lending and operates in and across the UK and US markets.
Following the completion of the transaction, Burdale will become part of Wells Fargo Capital Finance, the asset-based lending group of Wells Fargo.
Bank of Ireland said that the proceeds of the sale will be used to reduce its wholesale borrowings in line with the bank’s deleveraging plan and the sale will not affect its core Tier 1 ratio.
Wells Fargo Capital Finance chairman and CEO Henry Jordan said that expanding their asset-based lending business into the UK allows them to better meet the international needs of their US-based customers, while continuing to enhance their international asset-based lending platform.
The transaction is expected to close in early 2012.