Link Group’s deal with Pepper ‘offers €10m cost savings’

LINK Group, the Australian-listed financial firm which recently acquired Pepper European Servicing for up to €200m, has identified €10m worth of synergies between the businesses.

Last week, during a call covering the deal, John McMurtrie, managing director of Link Administration, said the business had identified synergies during due diligence “in the order of €10m”.

Pepper has over 500 people working across Shannon and Dublin, while Link employs around 532 people in Dublin and Maynooth.

“We do have, together with Pepper, large operations in the UK and also in Ireland,” he said. “So I think there are some opportunities for some rationalisation, our premises and central functions, which will fade into the €10m identified.”

A presentation published by Link confirmed the business had identified “annual efficiency benefits” estimated to be in the region of €10m, but that these would require “one-off integration and investment spend of €15m”.

The efficiencies are to be realised over the medium term.

The transaction between Link and Pepper would create a company with around €130bn of assets under management, employing 1,800 people across Europe. It is subject to regulatory approvals and is expected to close in the second half of the year.

Pepper and Link have substantial operations in Ireland. It is understood employees were informed that the new owners would look to see “how best to deploy the group’s resources with a view to finding some synergies”.

A spokesperson for Pepper said: “Last week’s announcement has no impact on customers or employees and it’s business as normal.

“When the deal closes, there will be a growthfocused integration plan, which will include looking at how to best deploy the combined resources of the business across Europe.”

Link failed to respond to a request for comment.