£370m acquisition supports growth at credit management business
Lowell Group, one of Europe’s leading credit management services providers has agreed to purchase Manchester-based Hoist Finance UK.
The deal valued at £370m will see the Leeds company acquire not only the business but its entire unsecured non-performing loan portfolio, which is almost exclusively in the credit card and personal loan sector.
The portfolio which includes over 2m consumer accounts with £585m 180 month Estimated Remaining Collections as at December 2021.
The deal will support Lowell’s growth plans and delivers a strategic expansion into the UK financial services sector, specifically banking. It will allow the business to benefit from from improved data insight from the financial services market, materially speeding up pricing and analysis whilst reducing investment risk.
Colin Storrar
Colin Storrar, Lowell group CEO, said: “Hoist Finance is a strong UK market player and its platform, experience, data and portfolio will bring much added value to the Lowell Group. This transaction also demonstrates our ambition, cementing our place as one of the largest UK and European credit services providers across all principal sectors. This is a continuation of our growth trajectory and supports the delivery of the strategic goals we set ourselves.”
The deal will be funded via a combination of proceeds from the group’s first European Rated Loan ABS via Wolf Receivables Financing which will raise proceeds of £100m, strong operating cash flow and existing committed funding sources.
Completion of the acquisition is subject to the approval of the Financial Conduct Authority and is expected Q3 2022.
