Virgin Money to sell private bank Church House Trust

UK financial services company Virgin Money Holdings (UK) Limited said it had agreed to sell regional private bank Church House Trust Limited to specialist credit card provider SAV Credit Limited for an undisclosed sum.

The target, which was founded in 1978, specialises in providing deposits and mortgages to personal banking customers. It was acquired by Virgin in January 2010.

In a separate statement, the buyer said that the acquisition was an important move in the company’s plan to expand in areas apart from its core credit card business and would allow it to bolster its presence in the savings market. Under the terms of the deal, the target’s staff, headed by Graham Hughes, and its base in Yeovil will be preserved.

The transaction is subject to approval by UK’s Financial Services Authority (FSA) and is seen closing in the first half of 2013.

Virgin Money provides savings, mortgages, credit cards, pensions, investment and protection products to more than 4m customers. It is also the official sponsor of the London Marathon.