Today Intrum announced the sale of the business units (the Divested Group) that are being sold to fully honour the commitments made to the European Commission in relation to the approval of the combination of Intrum Justitia and Lindorff on June 12, 2017.
The Divested Group consists of the Lindorff businesses in Denmark, Estonia, Finland, Sweden and the Intrum Justitia business in Norway. This is the media statement from the Divested Group:
Today a sales and purchase agreement was signed by Intrum and Lowell, where Lowell buys the Divested Group for € 730 million as disclosed earlier this morning.
– We couldn’t have asked for a better owner and we are excited to become part of Lowell, Divested Group CEO Trond Brandsrud states.
The new ownership means that the Divested Group will get a new owner with deep expertise and a strong standing within the credit management industry.
– The combination of the two of us will be unique and compelling. Being part of a larger European industrial group will help us to achieve our ambitions to broaden our client base and to further enhance our capabilities, Trond Brandsrud adds.
The Divested Group was formed on June 12th and has since been operating as a stand-alone group of companies although fully owned by Intrum. During this time the Divested Group has seen a strong demand for its services.
– Our business momentum is strong and we continue to see increasing interest in our services from both new and existing clients, Brandsrud adds.
The transaction values The Divested Group at EUR 730 million on an enterprise value basis, with estimated cash proceeds of about EUR 700 million to be received by Intrum. Intrum is confident that the divestment will fully honour the commitments made to the European Commission in relation to the approval of the combination of Intrum Justitia and Lindorff on June 12, 2017. This agreement is also subject to customary competition and regulatory approvals.
– I’m pleased to be extending the Lowell family, said James Cornell, Group CEO Lowell, I believe that the combination of our operations and cultures is highly compelling.
Lowell is one of Europe’s largest credit management companies with operations in the UK, Germany and Austria, and a vision to be the best in its field in Europe. For clients. For consumers. Europe wide. Lowell combines its principled approach, international experience, deep understanding of data analytics and operational efficiency to serve every part of the credit management value chain, with expertise in debt purchasing, third party collections, business process outsourcing, credit management and e-commerce. Previously named Lowell GFKL Group, Lowell was formed in 2015 following the merger of the UK and German market leaders: the Lowell Group and the GFKL Group. It is backed by global private equity firm Permira – whose funds first invested in 2015, backing the Lowell-GFKL merger - and Ontario Teachers’ Pension Plan.
About the Divested Group:
The Divested Group is an end to end credit management service provider, offering solutions within debt collection and debt purchase as well as payment and invoicing services. The Divested Group has approximately 900 employees and operations in five markets. For the last twelve months to September 30, 2017, The Divested Group’s revenues amount to approximately EUR 190 million, with EBITDA excluding non-recurring items of approximately EUR 55 million (pro forma for standalone management fees). As of September 30, 2017, The Divested Group had purchased debt portfolios with a book value of approximately EUR 400 million.
For further information please contact:
Head of Group Communications
Communications Lead UK
+44(0)7768 260 293