Armeec, the Largest Automotive Insurer, Acquired the Leasing Company of Postbank

Armeec, the Largest Automotive Insurer, Acquired the Leasing Company of Postbank

Armeec Leasing acquired 100% of the capital of ERB Leasing EAD – the leasing company of Postbank, according to a notice from the Commission for Protection of Competition. Unlike Armeec Leasing, which had a relatively niche business until now, ERB has a large portfolio and ranks 11th by market share. According to an announcement by Armeec Leasing, the newly acquired company is planned to focus mainly on financial lease of cars and trucks, equipment and machines.

Armeec Leasing develops a niche business and so far has offered mainly services related to the payment of vehicle insurance contributions for Armeec’s customers. Its clients are both individuals and legal entities, and the new purchase is a clear sign of business expansion aspirations. Armeec Leasing and Armeec ZAD are part of the Chimimport Group, one of the largest holding companies in Bulgaria, which brings together subsidiaries operating in various sectors – mainly in the field of transport, finance and manufacturing. This deal marks the fifth leasing company acquired by Chimimport, which obviously aims at achieving leadership in this financial services sector. Between 2015 and 2017, the group acquired four leasing companies – the Austrian Erste Group Immorent, Piraeus Leasing, BM Leasing and TBI Rent (whose sell-side consultant was SORTIS Invest).

ERB Leasing works in the field of financial leasing of cars and trucks, equipment, machines and real estate. In 2017 the company had revenues of BGN 22.2 M and profits of BGN 421,000. It provides also a limited range of operating leasing services. After restructuring, part of its operations were transferred to ERB Leasing Bulgaria, which continues to be part of Postbank Group.

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