Leeds' Lowell Group to acquire carve-out business from Intrum in €730m deal

Lowell, the Leeds-based specialist in credit management services backed by the Permira funds and Ontario Teachers’ Pension Plan, has entered into a definitive agreement to acquire the carve-out business from Intrum.

The carve-out comprises Lindorff’s entire business in Denmark, Estonia, Finland and Sweden, as well as Intrum Justitia’s entire business in Norway.

It was specified by the European Commission as a condition of the combination of the two companies earlier this year.

The transaction is valued at €730m on an enterprise value basis and is subject to the approval of Lowell as purchaser by the European Commission, as well as customary competition and regulatory approvals.

The transaction, which is expected to close in H1 2018, will create one of the largest credit management service providers in Europe.

The acquisition will be funded through a combination of new debt issuance and equity.

The combined business will benefit from greater scale and diversification in terms of broader geographic reach and a more balanced revenue mix together with a complementary and client-focused product offering.

James Cornell, CEO Lowell, said: “I’m pleased to be extending the Lowell family today. Our shared commitment to innovation and best practice for consumers and clients alike, will significantly strengthen our service proposition across the credit management value chain.

“I believe that the combination of our operations and cultures is highly compelling and, together, I am convinced that we can continue to drive growth across one of Europe’s most sophisticated credit markets through our combined expertise and experience.”

Trond Brandsrud, CEO carve-out business, added: “We are excited to welcome our new owners and to become part of Lowell. This means getting an owner with deep expertise and a strong standing within our industry. The combination of the two of us will be extremely compelling.”

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →