Barclays Bank UK to buy Kensington Mortgage, select UK mortgage portfolios in £2.3bn deal

(RTTNews) – Banking giant Barclays plc (BARC, BCS) announced on Friday that Barclays Bank UK PLC has agreed to acquire British specialist mortgage lender Kensington Mortgage Co. Ltd.

Barclays Bank UK is acquiring the business from companies controlled by funds managed by Blackstone Tactical Opportunities Advisors LLC and funds affiliated with Sixth Street Partners LLC.

Barclays Bank UK has also agreed to acquire a portfolio of UK mortgages consisting primarily of mortgages originated by KMC from October 2021 until the completion of the KMC acquisition.

The total consideration payable by Barclays Bank UK under the settlement agreements is expected to be approximately £2.3 billion. The consideration assumes that the deal will close in early December 2022 and that KMC’s mortgage portfolio includes approximately £2.0bn of loans by that date.

The transaction is subject to regulatory approvals and is expected to close late in the fourth quarter or early in the first quarter of 2023.

Kensington Mortgage provides mortgages through brokers to complex income borrowers. The company has approximately 600 employees and also handles mortgages for other parties. KMC generated £65.9 million in revenue and a pre-tax profit of £0.5 million in 2021.

Barclays expects the acquisition to enable it to expand its product offering and capabilities in the UK mortgage market, increase customer base and increase mortgage lending to better utilize the strong base of UK funding.

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