Arrow Global to buy rival in £158m deal
ARROW Global, the debt acquisition and recovery company is set to buy a rival in a deal worth £158m.
The Manchester-based company is to buy Capquest, a consumer debt purchaser and outsourced collections provider, from a fund controlled by investment firm TowerBrook Capital Partners.
The deal will add 385 staff to Arrow Global. Capquest’s head office is in Farnborough, Hampshire and it has a second office in Glasgow. Its chief executive, Helen Ashton, a former managing director of Barclaycard International, will join Arrow Global’s senior management team on completion.
Arrow said the acquisition would create a leading European debt purchase and debt management business, with £15.4bn combined receivables under management by face value.
It said the deal is consistent with its strategy of expanding into new asset classes and provides access to a more diverse range of origination sources to increase access to portfolio purchase opportunities at attractive returns.
The company added: “The combination of Capquest’s in-house collection capabilities with Arrow Global’s master servicing model is expected to provide the enlarged group with an enhanced collection model from a cost, operational and regulatory perspective.”
Arrow is funding the deal through cash resources and debt with committed bridge financing from Goldman Sachs.
Tom Drury, chief executive of Arrow Global said: “The acquisition positions us well to enhance the quality of our offering to our customers and clients.
“Bringing together Capquest’s customer-focused in-house collection capabilities with Arrow Global’s data-driven master servicing model is an important step in achieving our vision. It adds a significant portfolio of assets at attractive returns, supports our broad range of origination sources and extends our reach into new asset classes.
“I look forward to welcoming Helen Ashton and her colleagues to our team and working together to deliver continued growth.”
Deloitte provided tax due diligence and tax structuring advice to Arrow.
