Lowell Group, the Leeds-based credit management services providers, has acquired Hoist Finance UK.
The transaction includes the operations of Hoist Finance UK and its entire unsecured non-performing loan portfolio, comprising of over 2 million consumer accounts, with approximately £585m 180 month Estimated Remaining Collections as at December 2021. The loan portfolio is almost exclusively in the credit card and personal loan sector.
The acquisition continues Lowell’s growth trajectory as well as delivering targeted, strategic expansion into the UK financial services sector, specifically banking. Lowell will also benefit from improved data insight from the financial services market, materially speeding up pricing and analysis whilst reducing investment risk.
The transaction is valued at £370m on an enterprise value basis as at 31 December 2021 which accounts for £340m of net debt. Completion is subject to the approval of the Financial Conduct Authority and is expected Q3 2022.
Colin Storrar, Lowell Group CEO, said: “Hoist Finance is a strong UK market player and its platform, experience, data and portfolio will bring much added value to the Lowell Group. This transaction also demonstrates our ambition, cementing our place as one of the largest UK and European credit services providers across all principal sectors. This is a continuation of our growth trajectory and supports the delivery of the strategic goals we set ourselves.”
