Intrum Justitia and Lindorff announce their intention to combine to create the industry leading provider of credit management services ("CMS").
- The combined entity is, through its scale and diversification, ideally positioned to capture the strong market growth in the CMS industry.
- The combination is expected to provide material benefits for all stakeholders and create significant shareholder value through annual cost synergies estimated at SEK 0.8bn and significant further revenue synergies.
- An agreement has been entered into pursuant to which Intrum Justitia will acquire all the outstanding shares in Lindorff in exchange for newly issued shares in Intrum Justitia.
- Intrum Justitia and Lindorff shareholders will own approximately 53% and 47% of the shares, respectively, in the combined entity. Nordic Capital Fund VIII, currently the indirect majority shareholder in Lindorff, will become the largest indirect shareholder in the combined entity.
- The transaction is unanimously recommended by the Board of Directors of Intrum Justitia and Lindorff.
- The transaction is subject to Intrum Justitia shareholder approval as well as regulatory and competition authority approvals. The transaction is expected to close in the second quarter of 2017.
The combination of Intrum Justitia and Lindorff creates the industry leading CMS company with local presence in 23 markets across Europe and a team of more than 8,000 professional, committed and caring employees. By joining forces, both local and global clients will benefit from a strong pan-European platform, enhanced service offering, innovative solutions and best in class compliance.
“Together we have the scale and unique position to capture the unprecedented opportunity for growth and expansion presented by ongoing structural trends in the banking sector. We share the ambition to lead the industry and the belief that we can contribute to a sound economy in Europe. Both companies have, each in their own right, pioneered efforts to transform how our industry does business with a focus on compliance and fair and respectful collection”, said Mikael Ericson, President and Chief Executive Officer of Intrum Justitia.
“This combination is a great fit both geographically and from a segment expertise and clientele perspective. It will strengthen our local presence and give us the international platform to continue to further improve our services to both small and large clients. Together with Mikael, I look forward to combining our employees’ skills and industry expertise to create the leading credit management services organization in the industry,”said Klaus-Anders Nysteen, President and Chief Executive Officer of Lindorff.
“I am very pleased that this industrially strong combination has been agreed. The combined business has the potential to deliver significant value to clients, shareholders and society going forward,” said Lars Lundquist, Chairman of the Board of Intrum Justitia.
“We are really excited about this combination of the two longest standing credit management companies in Europe and recognize the strength of the companies and the opportunities in the industry. Given the growth trajectory of both businesses and the benefits that will come from the combination Nordic Capital looks forward to continue supporting the combined business as a listed company and sees significant potential for further value creation”, said Kristoffer Melinder, Managing Partner, NC Advisory AB, advisor to the Nordic Capital Funds.
“These two companies are a great fit with complementary strengths and will become a leading force in shaping the future of credit management. In addition to creating a strong platform for growth, this company has the potential to drive consolidation in a fragmented industry. The two teams are impressive in their commitment and dedication”,said Per E Larsson, Chairman of the Board of Lindorff.
Press conference and analyst calls
There will be a joint press conference on 14 November at 10.30 am CET.
Participants: President and CEO Mikael Ericson, Intrum Justitia, and President and CEO Klaus-Anders Nysteen, Lindorff together with Chairman Lars Lundquist, Intrum Justitia and Kristoffer Melinder, Managing Partner, NC Advisory AB, advisor to the Nordic Capital Funds.
Location: Scandic Anglais, Humlegårdsgatan 23, Stockholm, Sweden
The Press Conference can be followed live via:
To participate by phone, please dial +46 8 5664 2690 (SE), +47 23 50 02 54 (NO) or +44 20 300 898 01 (UK). The conference will be held in English, no registration in advance is required. The press conference will be available afterwards via www.financialhearings.com or www.intrum.com or investor.lindorff.com
1 pm CET: Conference call for investors and analysts with Intrum Justitia
Intrum Justitia President and CEO Mikael Ericson and Chief Financial Officer Erik Forsberg and Lindorff President and CEO Klaus-Anders Nysteen and Chief Financial Officer Trond Brandsrud will be available for questions at a teleconference on 14 November at 1 pm CET. Presentation material will be available at www.intrum.com.
To participate by phone, please dial +46 8 5664 2690 (SE), +47 23 50 02 54 (NO) or +44 20 3008 9806 (UK).
The conference will be held in English, no registration in advance is required.
2 pm CET: Conference call for bond holders and analysts with Lindorff
Lindorff President and CEO Klaus-Anders Nysteen and Chief Financial Officer Trond Brandsrud and Intrum Justitia President and CEO Mikael Ericson and Chief Financial Officer Erik Forsberg, will be available for questions at a teleconference on 14 November at 2 pm CET. Presentation material will be available at investor.lindorff.com.
To participate by phone, please dial +46 8 5664 2662 (SE), +47 23 50 02 54 (NO) or +44 20 3008 9811 (UK).
The conference will be held in English, no registration in advance is required.
For additional information and media, please contact:
Contact person: Annika Billberg, Group Marketing & Communications Director, + 46 702 67 97 91, email@example.com
Contact person: Karen Romer, Executive Vice President Communications, +47 95 07 49 50, firstname.lastname@example.org
Contact person: Katarina Janerud, Communications Manager, NC Advisory AB, advisor to the Nordic Capital Funds +46 709 69 69 99, email@example.com
About Intrum Justitia
Intrum Justitia is Europe’s leading credit management services group, offering comprehensive services, including purchase of receivables, designed to measurably improve clients’ cash flows and long-term profitability. Founded in 1923, Intrum Justitia has about 4,000 employees and operations in 20 markets. Consolidated revenues amounted to about SEK 5.6bn in 2015. Intrum Justitia AB is listed on Nasdaq Stockholm since 2002. For further information, please visit www.intrum.com
Founded in 1898, Lindorff is the leading full-service European credit management service provider, offering services within debt collection and debt purchase as well as payment and invoicing services. The company has 4,400 employees in 13 countries with headquarters in Oslo, Norway. In 2015, Lindorff generated EUR 534m in net revenue. Lindorff is majority owned by Nordic Capital Fund VIII. For further information, please visit www.lindorff.com
About Nordic Capital
Nordic Capital private equity funds have invested in mid-market companies primarily in the Nordic region since 1989. Through committed ownership and by targeting strategic development and operational improvements, Nordic Capital enables value creation in its investments. Nordic Capital Funds invest in companies in northern Europe and in selected investment opportunities internationally. Nordic Capital currently has EUR 10.5bn in assets under management. The most recent fund is Nordic Capital Fund VIII with EUR 3.5bn in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Funds are based in Jersey, Channel Islands, and are advised by the NC Advisory companies in Sweden, Denmark, Finland, Norway, Germany and the UK. For further information about Nordic Capital please see www.nordiccapital.com.