Heartland Group has completed its acquisition of StockCo Australia, marking its entry into the local rural finance market.
Heartland announced yesterday that the A$154.4 million purchase of StockCo Holdings 2 Pty Ltd and StockCo Australia Management Pty Ltd was completed on May 31.
StockCo’s funding has been refinanced by a new two-year securitisation warehouse funded by two “major Australian financial institutions”, with additional capacity for growth.
Elders, which was a joint owner of StockCo, will remain involved as a distribution partner and has signed a five-year agreement.
Heartland has a rural finance business in New Zealand and will draw on that expertise to develop the local business.
It said it aims to build on StockCo position as a provider of livestock finance for cattle and sheep farmers, “delivering capital for growth, digital enhancements to the existing product offering and expansion into new market segments”.