Bank of Ireland buys out Burdale for €71m

BANK OF IRELAND has splashed out €71 million to take control of a British bank that beat it to the punch for a high-profile €200m lending deal with Waterford Wedgwood.

The bank will complete the takeover of London-based Burdale Financial Holdings, which was previously owned by American lending giant Wachovia Corporation, before the end of next month.

Burdale came to prominence in Ireland in October when news emerged that it had agreed a refinancing package with troubled luxury goods group Waterford Wedgwood. The deal saw Burdale lead a consortium that provided funds to Waterford to allow it to repay its existing syndicate of banks, which included Bank of Ireland.

Waterford said at the time that the Burdale package offered greater flexibility and scope and was less restrictive than the terms on offer from its existing banks.

Chief executive Brian Goggin said the deal showed the bank meant business when it came to growing its international niche lending operations. He said Burdale was an excellent fit with the group’s existing specialist ventures.

“We are constantly seeking opportunities to augment our skills portfolio, particularly by adding new capabilities,” he said.

The bank declined to comment on Burdale’s link with Waterford as it does not discuss its dealings with individual customers.

Burdale provides business loans that are secured against the borrower’s buildings, equipment or stock, but also engages in other niche activities.

These include providing funding for management buy-outs or acquisitions, replacing complex financing deals that were already in place, or injecting funds into companies that are in difficulty.

The bank gave no details on the new business’s profitability but said its services were “relatively new” in Britain despite being well-established in America. Burdale employs 30 people.