Fidelity Capital Keeps Growing with Purchase of Collection Agency

Fidelity Capital Holdings Inc. this week continued its acquisition program, buying Gray Collection Services, Inc., a Downey, Calif.-based collection agency. The deal is the second for Fidelity in the last four weeks, following its purchase of Nationwide Debt Recovery in October (“Fidelity Capital Acquires California Collection Agency,” 10/5). Fidelity hasn’t released terms of either deal.

Fidelity Capital has offices in Canoga Park, Modesto, Ventura and now Downey, California.

"We are excited by the opportunities created through this transaction and anxious to complete our integration," Clinton J. Sallee, Fidelity’s CEO and president, said in a press release. "For nearly 75 years, (Gray) has enjoyed an excellent reputation within our industry. This acquisition enables us to continue to expand Fidelity’s healthcare practice, which is a cornerstone of our growth strategy."

Bill Gray, CEO of Gray Collection Services (GCS), said in the release that his impending retirement led him to sell the firm that was founded in 1933 by his grandfather.

Walter H. Carleton III, Fidelity chairman, told insideARM.com last month that the company would have about 70 staff after the Nationwide Debt acquisition. About 70 percent of Fidelity's work is in healthcare and it also focuses on property management paper for banks and financial institutions, Carleton said.

Fidelity was formed in November 2006 with the merger of Fidelity Creditor Service, Inc. and Gess & Associates (“California Collection Agencies Merge,” 11/10/06), both full-service collection agencies. Carleton was named chairman and Sallee was named president and CEO.