Keleghan Finishes Job at OSI, Moves On

Kevin Keleghan, former president and CEO of Outsourcing Solutions, Inc. (OSI), left the company as soon as its take over by NCO Group was completed, according to several sources.

Brian Callahan, NCO’s vice president of financial reporting, confirmed that Keleghan had left the firm. Callahan did not know what Keleghan’s plans were, but said that Keleghan had finished the job he was brought in to do. “Management did a great job of turning the company around from bankruptcy,” said Callahan.

According to one person at OSI, Keleghan’s last day was Friday, the day NCO announced it had closed its $325 million deal to acquire OSI. Keleghan could not be reached for comment.

Keleghan, the head man at St. Louis-based OSI since late 2002, told insideARM when the deal was announced in December that he would probably leave the company when the deal closed (“NCO-OSI Deal Signed, Now it has to Get Done,” Dec. 13, 2007). “I think after the deal is done, and an integration plan is in place, my job is done here and it will be on to the next mission,” Keleghan said, adding that he was not looking at other opportunities.

Keleghan was brought in to OSI following the retirement of then-CEO Timothy Beffa in September 2002. Keleghan’s expertise in operational turnaround was put to test when the company immediately launched a massive restructuring program. In May 2003, OSI filed for Chapter 11 bankruptcy protection in the face of mounting debt.

OSI emerged from bankruptcy in December 2003, with a host of new investors and a $90 million credit facility from Merrill Lynch to finance debt purchasing operations, a new focus for the ARM giant.

Prior to Keleghan joining OSI, the firm had been on an acquisition spree and lost operational efficiencies. He introduced Six Sigma methodology to the industry, a holdover from his days at GE (“Interview: Kevin Keleghan, President and CEO of OSI,” October 27, 2005). He also brought in a host of executives to help improve the company's profitability.

“Kevin’s role was always very clear: clean up OSI's financial structure and generate value for its investors and shareholders through a sale,” said Mike Ginsberg, CEO of ARM industry advisory firm Kaulkin Ginsberg. “He succeeded in accomplishing his mission, with the NCO takeover serving as his final act.”