Encore Capital Announces Plan to Explore Possible Sale or Going Private

Encore Capital Group Inc. (Nasdaq: ECPG), a leading debt purchaser and collector, announced today that the company’s Board of Directors has formed a special committee to “consider strategic alternatives.” In the announcement, Richard A. Mandell, Chairman of the Board of Directors, stated that the Board “believes that there is tremendous value in the Company that is not currently being fully realized in the public markets.”

The announcement said that the Board is specifically authorized to explore strategic alternatives, such as the sale of the business, to enhance value for its shareholders.

The Special Committee is composed of directors Barry R. Barkley, Eric D. Kogan, Alexander Lemond and Richard A. Mandell. Encore also stated that they had retained J.P. Morgan Securities Inc. and Lazard Freres & Co. LLC as its financial advisors and Paul, Weiss, Rifkind, Wharton & Garrison LLP as its legal counsel.

The Encore announcement comes on the heels of two very high-profile moves by publicly-traded companies in the ARM industry. On May 31, West Corporation announced a $4.1 billion private equity-lead buyout that would leave the company as a private firm. On May 16, NCO Group announced a nearly $1 billion offer from their CEO to purchase the collection giant and take it private.