Investment Firm Buys Half of European Collector Lindorff for $560 Million

Oslo, Norway-based Lindorff Group said Wednesday that the private equity group that owns it is selling a 50 percent stake in the accounts receivable management giant for about $560 million to an investment holding company aptly named Investor AB.

Lindorff had been previously majority-owned by Stockholm, Sweden-based private equity firm Altor Equity Partners. Altor and Investor AB announced that the two will partner after the deal with each owning a 50 percent stake in Lindorff.

“Altor has been majority owners and worked with Lindorff management for almost five years,” Hugo Maurstad, chairman of Lindorff and partner in Altor Equity Partners, said in a statement. “Lindorff is today the well positioned to capitalize on growth from increased credit losses, consolidation and geographic expansion in Europe. We have been searching for a partner to support us in the next era of Lindorff’s development. Investor brings the competence, network and credibility we need to support Lindorff on this journey and we look forward to work together going forward.”

Lindorff is the largest debt purchasing and collection company in Europe’s Nordic region. In 2007, it reported revenues of $542 million. The company has recently been expanding into the rest of Europe (“European ARM Giant Buys German Collector, Looks to Consolidate ARM Market,” March 7).

In late May, Lindorff announced that it was opening its first ARM presence in Russia. The company said that it was formally opening the doors on an office in Moscow with 22 employees, comprised mainly of lawyers. Lindorff anticipates opening another Russian office in St. Petersburg in the Fall.

The company noted that the credit extended to consumers in Russia “is doubling every year,” and that major businesses are switching from pre-payment to credit sales. Lindorff said its goal is to become the dominant ARM player in Russia.