Regulatory approve for £370m acquisition by credit management group
The £370m acquisition of Manchester-based Hoist Finance by Leeds credit management services provider, Lowell Group, received regulatory approval today (October 25).
Lowell unveiled the proposed takeover in April this year, confirming it involved not only the Hoist business but its entire unsecured non-performing loan portfolio, which is almost exclusively in the credit card and personal loan sector.
The portfolio includes more than two million consumer accounts which had approximately £585m 180 month Estimated Remaining Collections as at December 2021. The loan portfolio is almost exclusively in the credit card and personal loan sector.
John Pears, Lowell UK CEO, said: “This is an exciting time for a growing business like us and is another big step in Lowell’s targeted expansion.
“This purchase will position us as the UK’s largest credit management service provider and not only expands our customer base but also aligns with our growth plans of moving into financial services.
“We’re taking on two million more accounts, which will give us the data and insight we need to further strengthen our award-winning customer interactions. We’re looking forward to welcoming Hoist colleagues into the Lowell family and growing together as one business.”
Julian Winfield, CEO of Hoist Finance UK, said: “Lowell’s approach is industry-leading and the business has played a major role in setting the standard for others within the UK. The way that we work aligns perfectly to Lowell and this new partnership couldn’t be a better fit for us. We’re excited and ready to hit the ground running.”
The acquisition continues Lowell’s growth trajectory as well as delivering targeted, strategic expansion into the UK financial services sector, specifically banking.
Lowell will also benefit from improved data insight from the financial services market, materially speeding up pricing and analysis while reducing investment risk.
The Salford office will remain and will be positioned as a recruitment hub for talent in the North West. Approximately 180 individuals will join Lowell.