Encore Capital Group Announces Expansion in the U.K. through Acquisition of Wescot by Cabot Credit Management
August 24 2017 - 3:01AM
Encore Capital Group, Inc. (Encore) an international specialty
finance company (NASDAQ:ECPG), today announced that its subsidiary,
U.K.-based Cabot Credit Management (Cabot), has entered into an
agreement to acquire Wescot Credit Services Limited, a leading U.K.
contingency debt collection and business process outsourcing (BPO)
services company. Encore acquired a controlling stake in Cabot in
July 2013, and preparation for a potential Cabot IPO, announced in
February, remains on track.
Cabot’s acquisition of Wescot expands Encore’s strong presence
in the U.K., which is the largest mature credit market in the world
after the United States. Cabot was already the leading unsecured
debt buyer in the U.K. prior to the transaction, which is subject
to regulatory approval by the U.K. Financial Conduct Authority
(FCA) and is expected to close within three months.
“Cabot’s acquisition of Wescot demonstrates the expansion of its
product mix to reach a broader client base in the U.K. market and
creates synergies that will continue to foster growth,” said Ashish
Masih, President and Chief Executive Officer of Encore. “We’re also
pleased that Wescot shares our commitment to treating consumers
with fairness, dignity and respect, an approach critical to our
success around the world.”
As the largest debt services provider for the U.K. retail
banking sector, Wescot brings to Cabot a robust and diverse
collections operation, with a range of corporate clients including
utility, telecommunications and retail finance companies. “The
acquisition of Wescot will allow us to further diversify our
product range, reach a wider client base and better meet our
clients’ evolving needs,” said Paul Grinberg, Encore’s President,
International. “Combined with the strategic acquisition in May of
Orbit Services, a U.K-based debt services company specializing in
the public utilities markets, this acquisition will increase our
focus on capital-light servicing with an improved quality of
earnings.” It is estimated that less than 20 percent of collections
activity in the U.K. is currently outsourced, while delinquency
rates are expected to increase, driving demand for debt services.
Additionally, Encore, Cabot and Wescot have the opportunity to
create operational efficiencies by applying industry expertise and
sharing their best practices in analytics, systems and technology,
and a deep understanding of consumers.
About Encore Capital Group,
Inc.
Encore Capital Group is an international specialty finance
company that provides debt recovery solutions and other related
services for consumers across a broad range of assets. Through its
subsidiaries around the globe, Encore purchases portfolios of
consumer receivables from major banks and credit unions.Encore
partners with individuals as they repay their debt obligations,
helping them on the road to financial recovery and ultimately
improving their economic well-being. Encore is the first and only
company of its kind to operate with a Consumer Bill of Rights that
provides industry-leading commitments to consumers. Headquartered
in San Diego, Encore is a publicly traded NASDAQ Global Select
company (ticker symbol: ECPG) and a component stock of the Russell
2000, the S&P Small Cap 600 and the Wilshire 4500. More
information about the company can be found at
http://www.encorecapital.com.
More information about the Company’s Cabot Credit Management
subsidiary can be found at http://www.cabotcm.com. Information
found on the company’s or Cabot’s website is not incorporated by
reference.
Forward Looking Statements
The statements in this press release that are
not historical facts, including, most importantly, those statements
preceded by, or that include, the words “will,” “may,” “believe,”
“projects,” “expects,” “anticipates” or the negation thereof, or
similar expressions, constitute “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
(the “Reform Act”). These statements may include, but are not
limited to, statements regarding our future operating results,
performance, business plans or prospects. For all “forward-looking
statements,” the Company claims the protection of the safe harbor
for forward looking statements contained in the Reform Act. Such
forward-looking statements involve risks, uncertainties and other
factors which may cause actual results, performance or achievements
of the Company and its subsidiaries to be materially different from
any future results, performance or achievements expressed or
implied by such forward-looking statements. These risks,
uncertainties and other factors are discussed in the reports filed
by the Company with the Securities and Exchange Commission,
including the most recent reports on Forms 10-K and 10-Q, as they
may be amended from time to time. The Company disclaims any intent
or obligation to update these forward-looking statements.
For press inquiries, please contact:
Kevin Saidler
Manager, Corporate Communications
Encore Capital Group, Inc.
(858) 309-9772
kevin.saidler@encorecapital.com
For investor inquiries, please contact:
Bruce Thomas
Vice President, Investor Relations
Encore Capital Group, Inc.
(858) 309-6442
bruce.thomas@encorecapital.com
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