Massive Deal Brewing for UK Debt Purchaser-Collector: Paper

A mega-deal is unfolding in the United Kingdom’s accounts receivable management industry, according to a story in UK newspaper the Telegraph over the weekend.

Reigate, England-based 1st Credit Limited is to be placed for sale next week by its private equity owners Bridgepoint, according to the paper citing “people involved in the forthcoming auction.” The firm is expected to fetch over $650 million.

A debt purchase and collection shop, 1st Credit boasts more than $7.5 billion in consumer accounts under management. The firm has yearly revenues of around $150 million.

After a strategic review of the company by Citigroup, Bridgepoint decided to move forward with the auction sale, according to the story.

This is not the first occasion of rumors of 1st Credit’s imminent sale: earlier this year, Ken Maynard, CEO of rival UK ARM firm Cabot Financial, in a debt purchasing sector 2008 preview piece acknowledged rumors that 1st Credit’s owners were mulling a sale of the firm (“Cabot Chief Sees More Debt Sales in the UK,” Jan. 10).

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