Dorchester on acquisition trail

By Phil Boeyen, ShareChat Business News Editor

Monday 3rd September 2001

Financial services company Dorchester Pacific (NZSE: DPC) has announced its third acquisition in as many months.

The company is paying $7 million cash for Palmerston North-based Lynx Finance, which it says will complement its current branch structure and further develop its Manawatu business.

Chairman Murray Radford hinted at the acquisition at last week's AGM when he announced that the company had bought Whakatane financier Plains Finance and was contemplating further regional expansion.

MD, Brent King, says Dorchester Pacific has grown strongly over the last five years and its focus is to increase its network so that we can better service clients.

"Lynx Finance is compatible with Senate Finance, and increases the group's exposure to the motor vehicle sector.

"All staff and management will retain their positions and there is an opportunity to increase our market presence in Palmerston North."

Mr King says the company's strategy of increasing provincial exposure is a key factor in its future development.

"We are targeting regions with strong economic fundamentals. The investment in Plains Finance and Lynx Finance is another step in the planned development of Financial Services Group."

In June DPC paid $2.8 million for financial planning and personal savings group Save & Invest and Super Bonds.

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