Kerry-based payments company Fexco has entered the asset finance business with the purchase of BNP Paribas Finance from its French parent.

The acquisition marks the latest step in a determined expansion by Fexco, which has purchased three companies within a six-month period. The value of the BNP Paribas deal was not disclosed but industry sources estimated that the firm changed hands for less than €5 million.

Ms Bridget McGuire, general manager of Fexco International Payments, said the deal formed part of the firm's strategy of building a customer base for an expanded range of services. Fexco is expected to use the BNP purchase to help it expand its services into new, foreign markets.

BNP Paribas Finance provides and arranges leasing and hire purchase facilities for capital goods for its clients and for the customers of vehicle suppliers, manufacturing companies and business equipment firms.

It focuses on small and medium-ticket leasing and has offices in Dublin and Limerick.

Fexco will rename the asset finance business as Fexco Asset Finance and integrate it with the rest of the Fexco group.

Fexco said yesterday that it would retain "key senior executives" at BNP Paribas Leasing but made no comment about the rest of the firm's estimated 28 employees.

Accounts filed at the Companies Office show that BNP Paribas Finance produced pre-tax profits of €1.6 million in 2003, up from €1.3 million in the previous year. Retained profits were flat at €1.5 million. At the end of 2003, the firm had finance leases and lease purchase agreements worth €106.9 million.

Fexco made pre-tax profits of €9.4 million in 2003.