J.C. Flowers & Co. and Bain Capital Credit has agreed to purchase shares of The Co-operative Bank plc, resulting in a change in the shareholders of its ultimate holding company, The Co-operative Bank Holdings Limited, currently held by BlueMountain. The acquisition would see J.C. Flowers & Co. and Bain Capital Credit become significant investors in the bank alongside its five other existing financial sponsor investors.
Nick Slape, chief executive officer of the Co-operative Bank, commented, “We are delighted to welcome J.C. Flowers & Co and Bain Capital Credit and we are pleased that they share our positive view of the future possibilities for our bank. As our recent results show, we are on track with our transformation and the business continues to perform resiliently as we focus on supporting our customers during these challenging times. We head into the next stage of our transformation with growth in mortgage lending, a renewed and growing SME banking business and improved digitization to better serve customers. Our commitment to being a leader in ESG has been central to our brand for decades, given our heritage in the co-operative movement, and we believe this sets us apart in the market as we work with all our stakeholders to realize our Bank’s potential.”
Commenting on the transaction, Tim Hanford, head of Europe for J.C. Flowers & Co. said, “We have followed the development of The Co-operative Bank over the last decade and are impressed by the progress that has been made by the management team and Board. We now look forward to partnering with them to take advantage of some of the opportunities available in this post-COVID UK banking environment.”
Fabio Longo of Bain Capital Credit added, “We are excited to partner with The Co-operative Bank and support management in their plan for continued growth and value creation. The Co-operative Bank is truly unique in its ethical positioning, which is backed by a loyal customer base. We look forward to supporting this value proposition to existing and future customers.”