Lowell, a European credit management services provider backed by the Permira funds and The Ontario Teachers’ Pension Plan, is to create the second largest credit management services company in Europe through the acquisition of 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 acquisition will create a leading pan-European credit management platform that benefits from significant scale and great regional, as well as business mix, diversification. Lowell continues to build on its strong track-record of inorganic expansion and sustainable growth across sophisticated, resilient European credit markets.
The transaction is subject to the approval of Lowell Group as purchaser by the European Commission, as well as customary competition and regulatory approvals. It is expected to close in H1 2018.
Philip Muelder, Co-Head Financial Services at Permira, says: “We are delighted to continue to back Lowell’s strategic growth ambitions and commitment to be a pan-European credit management leader as it announces its acquisition of the carve-out from Intrum. There is a highly compelling strategic rationale to this transaction, with strong shared cultures and ambitions between Lowell and the carve-out.
“Our funds have an established track record of successfully partnering with market leading financial and professional services businesses having deployed circa EUR3.5 billion in eight investments to date including the recently announced acquisition of Duff & Phelps by Permira VI.”
