LSL buys mortgage distribution company

LSL has agreed to buy the mortgage distribution company, Advance Mortgage Funding (AMF), trading as Pink Home Loans, and its subsidiary business BDS Mortgage Group (BDS) from Skipton Holdings Group, which is a member of the Skipton Building Society Group.

The consideration for the acquisition, on a cash free, debt free basis, is 1.59m, which will be funded from existing banking facilities.

Completion of the acquisition is subject to FSA approval.

For the year ended December 31 2009, AMF made a loss from operations of 1.8m and BDS made a loss from operations of 1.7m.

The proforma unaudited loss from operations for the eight months ended August 31 2010 of AMF was 278,000 and for BDS it was 256,000.

As at December 31 2009, the gross assets of AMF were 4.4m and BDS were 1.1m.

AMF is a mortgage and insurance distribution company providing products and services to financial intermediaries, while BDS operates as a mortgage and insurance network and packager.

In a statement, LSL said: "LSL will build on its significant market position to create a formidable new force in the intermediary sphere, as one of the largest intermediary networks in the UK focusing on mortgage and protection advice. The acquisition further strengthens LSL's relationship with its key lender clients."