Lowell, a European leader in credit management services backed by the Permira funds and Ontario Teachers’ Pension Plan, has today 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 and was specified by the European Commission as a condition of the combination of the two companies earlier this year.

The transaction is valued at EUR 730 million 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. It is expected to close in H1 2018. The acquisition is expected to be funded through a combination of new debt issuance and equity.

Combining the two businesses fits well with Lowell’s strategic objective to develop sustainable competitive advantage across Europe in chosen markets and to support continued growth. The transaction will create one of the largest credit management service providers in Europe and make Lowell a market leader across the Nordic region.

Lowell’s expertise, management and financial resources, alongside this group’s strong business mix, rich talent and regional reach, provide the combined group with excellent opportunities to drive further growth and diversification in a highly developed, data-rich credit market.

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.

Lowell and the carve-out business share an overarching commitment to a fair and principled business approach that puts people at the heart of the culture, whether that is clients, consumers or colleagues. This shared, values-based approach will be central to our integration and provide consistency to our vision: to be the best in our field. For clients. For consumers. Europe-wide.

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, said:

“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.”

About Lowell:

Lowell is one of Europe’s largest credit management companies with operations in the UK, Germany, Austria and Switzerland 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.

Lowell is headquartered in both Leeds (UK) and Essen (Germany). For more information on Lowell, please visit our investor website: www.lowellgroup.com

About the Carve-out Business:

The carve-out business comprises Lindorff’s businesses in Denmark, Estonia, Finland and Sweden as well as Intrum Justitia’s business in Norway and has been divested to address potential competition concerns raised by the European Commission following its investigation into the combination between Lindorff and Intrum Justitia. It is a full-service credit management service provider, offering services within debt collection and debt purchase as well as payment and invoicing services with approximately 900 colleagues. For the last twelve months to September 30, 2017, the carve-out business estimated revenues amount to approximately EUR 190 million. As of September 30, 2017, the carve-out business had purchased debt portfolios with a book value of approximately EUR 400 million.

Q3-17 Bond Call 23 November

Further information regarding the acquisition will be shared during our Q3-17 results call scheduled for Thursday November 23.

Key contacts:

Investor Relations enquiries:

Jon Trott, Head of Investor Relations
Telephone: +44 333 556 5801 Ext. 30084
Email: investors@lowellgroup.co.uk

Media enquiries:
Jason Clarke, Communications Lead UK
Telephone: +44 7768 260 293
Email: media@lowellgroup.co.uk

Henrik Hannemann, Communications Lead DACH Region
Telephone: +49 201 102 1172
Email: pr@lowellgroup.de

James Olley, Communications Support UK
Telephone: +44 7974 982 302
Email: jolley@montfort.london

Sofie Zetterlund, Communications Lead Nordic Region
Telephone: +46 70 570 0997
Email: sofie.zetterlund@fogelpartners.se

Lowell GFKL Group completes its acquisition of the leading German third party collections company Tesch Inkasso strengthening its position in a core market

Lowell GFKL Group (“Lowell GFKL”), a European leader in credit receivables, announced today that it has completed its acquisition of Tesch Inkasso Group from Avedon Capital Partners and the other existing shareholders following prior receipt of regulatory approvals.

 

For further information, please contact:

Investor Relations contact:

Jon Trott

Telephone: + 44 7551 153 793

Email:  investors@garfunkelux.com

 

Media contacts:

UK:

Lisa Caswell       Telephone: + 44 7393 236925

Email: MediaEnquiries@lowellgroup.co.uk

Germany:

Michaela Heitkemper       Telephone : + 49 201 102 1198

Email : pr@gfkl.com

 

Notes to Editors:

About Lowell GFKL

The Lowell GFKL Group was created in October 2015 following the merger of German and UK market leaders GFKL and the Lowell Group. This union created one of the largest credit management companies in Europe. It benefits from the backing of global investment company Permira Funds and Ontario Teachers’ Pension Plan (OTPP).

The Group’s experience, expertise and core strengths in data analytics and operational efficiency underpin its vision to be the most reputable and trusted partner in the European credit management sector.

http://investors.garfunkelux.com

About Tesch Inkasso

Tesch Inkasso was founded in 1985 by Siegward Tesch, has around 400 colleagues and is based in Gummersbach, Germany – in proximity to the GFKL headquarters in Essen. The company was acquired in 2012 by Avedon Capital Partners, the Dutch-German mid-market PE firm. Within Third Party Collection Services (3PC), the business is a market leader in Utilities and has a strong presence in the Insurance, Financial Services, E-Commerce, Telco, Travel and Retail sectors.

Recently the business has moved into Debt Purchasing (DP) through proprietary portfolio acquisitions from its existing asset base. Avedon Capital Partners has pursued a market consolidation strategy with recent acquisitions including Transcom CMS and Mediafinanz.

www.tesch-gruppe.com

Cautionary Statement

This press release is for information purposes only and does not constitute a prospectus or any offer to sell or the solicitation of an offer to buy any security in the United States of America or in any other jurisdiction. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended.

This announcement does not constitute and shall not, in any circumstances, constitute a public offering nor an invitation to the public in connection with any offer within the meaning of the Directive 2010/73/EU of the Parliament and Council of November 4, 2003 as implemented by the Member States of the European Economic Area.

Forward Looking Statements

This press release may include “forward looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These forward looking statements can be identified by the use of forward looking terminology, including the terms ‘‘believes,’’ ‘‘estimates,’’ ‘‘anticipates,’’ ‘‘expects,’’ ‘‘intends,’’ ‘‘may,’’ ‘‘will’’ or ‘‘should’’ or, in each case, their negative, or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts and include statements regarding Permira, Ontario Teachers’ Pension Plan, Avedon Capital Partners,  Lowell GFKL Group, Tesch Inkasso or their respective affiliates’ intentions, beliefs or current expectations concerning, among other things, the acquisition, Permira, Ontario Teachers’ Pension Plan, Avedon Capital Partners,  Lowell GFKL Group, Tesch Inkasso or their respective affiliates’ results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward looking statements are not guarantees of future performance and that Permira, Ontario Teachers’ Pension Plan, Avedon Capital Partners, Lowell GFKL Group, Tesch Inkasso or their respective affiliates’ actual results of operations, financial condition and liquidity, and the development of the industry in which they operate may differ materially from those made in or suggested by the forward looking statements contained in this press release. In addition, even if Permira, Ontario Teachers’ Pension Plan, Avedon Capital Partners,  Lowell GFKL Group, Tesch Inkasso or their respective affiliates’ results of operations, financial condition and liquidity, and the development of the industry in which Permira, Ontario Teachers’ Pension Plan, Avedon Capital Partners,  Lowell GFKL Group, Tesch Inkasso operate are consistent with the forward looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. Given these risks and uncertainties, you should not rely on forward looking statements as a prediction of actual results.

 

CLOSING OF GARFUNKELUX HOLDCO 3 S.A.’S OFFERING OF SENIOR SECURED FLOATING RATE NOTES DUE 2021

Lowell GFKL Group (“Lowell GFKL”), a European leader in credit receivables management, announced today that Garfunkelux Holdco 3 S.A. (the “Issuer”) has closed the offering (the “Offering”) of €230.0 million in aggregate principal amount of senior secured floating rate notes due 2021 (the “Notes”) as part of the financing for the previously announced proposed acquisition of Tesch Inkasso Group (the “Acquisition”). The Issuer will pay interest on the outstanding principal amount of the Notes at a rate equal to three-month EURIBOR (0% floor) plus 5.50% per annum. The gross proceeds of the Offering were €228.85 million.

 

For further information, please contact:

Investor Relations enquiries:
Jon Trott
Telephone: +44 7551 153 793
Email: investors@garfunkelux.com

 

Cautionary Statement

This press release is for information purposes only and does not constitute a prospectus or any offer to sell or the solicitation of an offer to buy any security in the United States of America or in any other jurisdiction. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Notes will be offered in a private offering exempt from the registration requirements of the Securities Act and will accordingly be offered only to (i) qualified institutional buyers pursuant to Rule 144A under the Securities Act, (ii) certain persons outside the United States in compliance with Regulation S under the Securities Act and (iii) Qualified Purchasers (as defined in Section 2(a)(51)(A) of the Investment Company Act).  No indebtedness incurred in connection with any other financing transactions will be registered under the Securities Act.

This announcement does not constitute and shall not, in any circumstances, constitute a public offering nor an invitation to the public in connection with any offer within the meaning of the Directive 2010/73/EU of the Parliament and Council of November 4, 2003 as implemented by the Member States of the European Economic Area (the “Prospectus Directive”). The offer and sale of the Notes will be made pursuant to an exemption under the Prospectus Directive, as implemented in Member States of the European Economic Area, from the requirement to produce a prospectus for offers of securities.

Forward Looking Statements

This press release may include “forward looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These forward looking statements can be identified by the use of forward looking terminology, including the terms ‘‘believes,’’ ‘‘estimates,’’ ‘‘anticipates,’’ ‘‘expects,’’ ‘‘intends,’’ ‘‘may,’’ ‘‘will’’ or ‘‘should’’ or, in each case, their negative, or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts and include statements regarding Lowell GFKL or its affiliates’ intentions, beliefs or current expectations concerning, among other things, the Offering, the Acquisition, Lowell GFKL or its affiliates’ results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward looking statements are not guarantees of future performance and that Lowell GFKL or its affiliates’ actual results of operations, financial condition and liquidity, and the development of the industry in which they operate may differ materially from those made in or suggested by the forward looking statements contained in this press release. In addition, even if Lowell GFKL or its affiliates’ results of operations, financial condition and liquidity, and the development of the industry in which Lowell GFKL operate are consistent with the forward looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. Given these risks and uncertainties, you should not rely on forward looking statements as a prediction of actual results.

PRICING OF GARFUNKELUX HOLDCO 3 S.A.’S OFFERING OF SENIOR SECURED FLOATING RATE NOTES DUE 2021

Lowell GFKL Group (“Lowell GFKL”), a European leader in credit receivables management, announced today that Garfunkelux Holdco 3 S.A. (the “Issuer”) has priced the offering (the “Offering”) of €230.0 million in aggregate principal amount of senior secured floating rate notes due 2021 (the “Notes”) as part of the financing for the previously announced proposed acquisition of Tesch Inkasso Group (the “Acquisition”). The Issuer will pay interest on the outstanding principal amount of the Notes at a rate equal to three-month EURIBOR (0% floor) plus 5.50% per annum.

Consummation of the Acquisition is subject to receipt of certain regulatory approvals. Pending consummation of the Acquisition, the gross proceeds from the Offering will be deposited into an escrow account in the name of the Issuer, which will be pledged in favour of the trustee on behalf of the holders of Notes. The release of the escrowed proceeds will be subject to the satisfaction of certain conditions. If the Acquisition is not consummated on or prior to 20 February, 2017, the Issuer will be required to redeem the Notes at their initial issue price. Upon release from escrow, the proceeds from the Offering will be used to finance the Acquisition, repay certain outstanding indebtedness under Lowell GFKL’s revolving credit facility and pay related costs, fees and expenses, and for general corporate purposes. There can be no assurance that the Acquisition, the Offering or other financing transactions will be completed.

  

For further information, please contact:

Investor Relations enquiries:
Email: investors@garfunkelux.com

Cautionary Statement

This press release is for information purposes only and does not constitute a prospectus or any offer to sell or the solicitation of an offer to buy any security in the United States of America or in any other jurisdiction. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Notes will be offered in a private offering exempt from the registration requirements of the Securities Act and will accordingly be offered only to (i) qualified institutional buyers pursuant to Rule 144A under the Securities Act, (ii) certain persons outside the United States in compliance with Regulation S under the Securities Act and (iii) Qualified Purchasers (as defined in Section 2(a)(51)(A) of the Investment Company Act).  No indebtedness incurred in connection with any other financing transactions will be registered under the Securities Act.

This announcement does not constitute and shall not, in any circumstances, constitute a public offering nor an invitation to the public in connection with any offer within the meaning of the Directive 2010/73/EU of the Parliament and Council of November 4, 2003 as implemented by the Member States of the European Economic Area (the “Prospectus Directive”). The offer and sale of the Notes will be made pursuant to an exemption under the Prospectus Directive, as implemented in Member States of the European Economic Area, from the requirement to produce a prospectus for offers of securities.

Forward Looking Statements

This press release may include “forward looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These forward looking statements can be identified by the use of forward looking terminology, including the terms ‘‘believes,’’ ‘‘estimates,’’ ‘‘anticipates,’’ ‘‘expects,’’ ‘‘intends,’’ ‘‘may,’’ ‘‘will’’ or ‘‘should’’ or, in each case, their negative, or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts and include statements regarding Lowell GFKL or its affiliates’ intentions, beliefs or current expectations concerning, among other things, the Offering, the Acquisition, Lowell GFKL or its affiliates’ results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward looking statements are not guarantees of future performance and that Lowell GFKL or its affiliates’ actual results of operations, financial condition and liquidity, and the development of the industry in which they operate may differ materially from those made in or suggested by the forward looking statements contained in this press release. In addition, even if Lowell GFKL or its affiliates’ results of operations, financial condition and liquidity, and the development of the industry in which Lowell GFKL operate are consistent with the forward looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. Given these risks and uncertainties, you should not rely on forward looking statements as a prediction of actual results.

LAUNCH OF GARFUNKELUX HOLDCO 3 S.A.’S OFFERING OF SENIOR SECURED FLOATING RATE NOTES DUE 2021

Lowell GFKL Group (“Lowell GFKL”), a European leader in credit receivables management, announced today that Garfunkelux Holdco 3 S.A. (the “Issuer”) intends to launch an offering (the “Offering”) of €230.0 million in aggregate principal amount of senior secured floating rate notes due 2021 (the “Notes”) as part of the financing for the previously announced proposed acquisition of Tesch Inkasso Group (the “Acquisition”). Consummation of the Acquisition is subject to receipt of certain regulatory approvals. Pending consummation of the Acquisition, the gross proceeds from the Offering will be deposited into an escrow account in the name of the Issuer, which will be pledged in favour of the trustee on behalf of the holders of Notes. The release of the escrowed proceeds will be subject to the satisfaction of certain conditions. If the Acquisition is not consummated on or prior to 20 February, 2017, the Issuer will be required to redeem the Notes at their initial issue price. Upon release from escrow, the proceeds from the Offering will be used to finance the Acquisition, repay certain outstanding indebtedness under Lowell GFKL’s revolving credit facility and pay related costs, fees and expenses, and for general corporate purposes. There can be no assurance that the Acquisition, the Offering or other financing transactions will be completed.

 

For further information, please contact:

Investor Relations enquiries:

Jon Trott, Head of Investor Relations

Telephone: +44 7551 153 793

Email: investors@garfunkelux.com

 

Cautionary Statement

This press release is for information purposes only and does not constitute a prospectus or any offer to sell or the solicitation of an offer to buy any security in the United States of America or in any other jurisdiction. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Notes will be offered in a private offering exempt from the registration requirements of the Securities Act and will accordingly be offered only to (i) qualified institutional buyers pursuant to Rule 144A under the Securities Act, (ii) certain persons outside the United States in compliance with Regulation S under the Securities Act and (iii) Qualified Purchasers (as defined in Section 2(a)(51)(A) of the Investment Company Act).  No indebtedness incurred in connection with any other financing transactions will be registered under the Securities Act.

This announcement does not constitute and shall not, in any circumstances, constitute a public offering nor an invitation to the public in connection with any offer within the meaning of the Directive 2010/73/EU of the Parliament and Council of November 4, 2003 as implemented by the Member States of the European Economic Area (the “Prospectus Directive”). The offer and sale of the Notes will be made pursuant to an exemption under the Prospectus Directive, as implemented in Member States of the European Economic Area, from the requirement to produce a prospectus for offers of securities.

Forward Looking Statements

This press release may include “forward looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These forward looking statements can be identified by the use of forward looking terminology, including the terms ‘‘believes,’’ ‘‘estimates,’’ ‘‘anticipates,’’ ‘‘expects,’’ ‘‘intends,’’ ‘‘may,’’ ‘‘will’’ or ‘‘should’’ or, in each case, their negative, or other variations or comparable terminology. These forward looking statements include all matters that are not historical facts and include statements regarding Lowell GFKL or its affiliates’ intentions, beliefs or current expectations concerning, among other things, the Offering, the Acquisition, Lowell GFKL or its affiliates’ results of operations, financial condition, liquidity, prospects, growth, strategies and the industry in which it operates. By their nature, forward looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Readers are cautioned that forward looking statements are not guarantees of future performance and that Lowell GFKL or its affiliates’ actual results of operations, financial condition and liquidity, and the development of the industry in which they operate may differ materially from those made in or suggested by the forward looking statements contained in this press release. In addition, even if Lowell GFKL or its affiliates’ results of operations, financial condition and liquidity, and the development of the industry in which Lowell GFKL operate are consistent with the forward looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. Given these risks and uncertainties, you should not rely on forward looking statements as a prediction of actual results.