Planned Sale of UK Debt Buyer 1st Credit Put on Hold

An auction conducted by Citigroup to find a buyer for United Kingdom-based accounts receivable management firm 1st Credit failed to find a buyer willing to pay what the firm’s current private equity owner was looking for.

According to the Financial Times, U.S.-based financial services giant Citigroup facilitated an auction that drew bids from at least three other private equity firm: Warburg Pincus, BC Partners and Bain Capital. But 1st Credit’s owner, Bridgepoint Capital, was not satisfied with the bids.

Earlier in the year, it was reported that Bridgepoint would be seeking at least $650 million for debt buyer and collector 1st Credit (“Massive Deal Brewing for UK Debt Purchaser-Collector,” Feb. 25). Reports today said that Bridgepoint’s asking price for the ARM company is £350 million ($695 million).

According to 1st Credit’s Web site, the company’s current debt portfolios include some 3.2 million consumer accounts valued at $8 billion. The firm said that it had revenues of $150 million in 2007.

According to various media reports, Bridgepoint has said it will now focus on growing the 1st Credit business and is actively evaluating debt collection acquisitions in Europe. One name floated was German ARM firm Hoist, one of the largest debt buyers in that country.