The deal price was close to £800m, including debt, according to a source.
Partners Group invested into Cabot in April 2011, partnering with AnaCap to facilitate the merger of Cabot Financial with Apex Credit Management.
After integrating both businesses over the past years, Cabot Credit Management today has over £7.7bn in assets under management.
Over the past year, CCM’s results showed a 13 per cent revenues increase driving adjusted EBITDA to £111m, a YOY increase of 23 per cent. In the 12 months to 31 December 2012 the group spent £99m on new portfolio purchases, and expects to exceed that in 2013. In September 2012 CCM issued a £265m senior secured note thereby securing longer term funding for its business activities.
Joe Giannamore, co-managing partner at AnaCap, said, “We are delighted with the result for our investors following the sale of Cabot Credit Management. As a result of the commitment and hard work of many people in AnaCap and Cabot, the business is now thriving as the top debt management firm in the UK. We expect Cabot to see continued growth in the coming years and believe J.C. Flowers is the ideal partner to help Cabot reach the next stage of its development.”
David Layton, managing director at Partners Group who served on Cabot’s board of directors, added,“Through the merger of Cabot Financial and Apex Credit Management, we established Cabot as the premiere acquirer and manager of consumer debt in the UK.
“The company’s operational performance post-merger, with EBITDA having increased by 23 per cent over the past year, reflects the successful integration in combination with stringent cost management. Equally important, we have been particularly pleased with Cabot’s outstanding culture of ethical, fair and responsible collections practices.”
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