The deal, the latest in an intense period of large scale M&A activity for the collections market, has seen Cabot pick up roughly $5.15 billion face value of debt across 188 different portfolios and a million customer accounts, each with an average balance of roughly $5,500.
“This purchase of dlc’s portfolio represents an opportunity to bring on board a large number of portfolios in a single purchase, as well as adding exciting new BPO capabilities. We see substanail uplift opportunity to dlc’s ERC through leveraging CCM’s enhanced non-pay strategies and scorecards. We look forward to welcoming the dlc management team and employees to the CCM group,” said Stannard.
The deal also sounds like a win from the Faccenda side as well. “We believe this is a very positive step for dlc, in a sector where scale is essential,” said Robin Faccenda, chairman of Faccenda Investments. “We recognised the need to identify a new owner that can leverage dlc’s established expertise, and develop the business further…[we are confident that] we have found that business in CCM.”
About Cabot Credit Management
Cabot Credit Management is a market leading acquirer and manager of consumer debt. Based out of the UK, Cabot is divided into four specialists businesses: Cabot Financial, Cabot Financial Ireland, Apex Credit Management, and Apex Discovery Solutions.
About Hillesden Securities Ltd.
Hillesden Securities Ltd., trading name dlc, was formed in 1979 and is now part of Cabot Credit Management’s group of companies. Dlc’s systems provide agility and flexibility, which allow them to manage complex debt recovery and collections outsourcing projects.
About Faccenda Investments
Faccenda Investments is the parent company of the Faccenda family of companies, which includes Faccenda Foods, Faccenda Farms, Faccenda Foundation, and Faccenda Property. They are based out of the UK.