15 May 2013 - J.C. Flowers & Co. acquires Cabot Credit Management.
Today, 15 May 2013, Funds managed and advised by J.C. Flowers & Co. LLC (“J.C. Flowers & Co.”) completed the acquisition of Cabot Credit Management Limited (“CCM”).
CCM was formed by the merger in April 2011 of two businesses, Apex Credit Management and Cabot Financial, purchased by funds advised by AnaCap Financial Partners LLP (“AnaCap”) and its co-investors, Morgan Stanley Alternative Investment Partners and Partners Group. CCM, which is headquartered in Kings Hill, Kent, is a market leading acquirer and manager of consumer debt in the United Kingdom and Ireland, with over £7.7bn of assets under management covering more than 3.5 million customer accounts. CCM’s key focus is the acquisition and servicing of portfolios of semi-performing debt.
In September 2012 a subsidiary of CCM, Cabot Financial (Luxembourg) S.A., issued £265m of 10.375% Senior Secured Notes due 2019. In the period since the bond was issued, the 84 month Estimated Remaining Collections ("ERC") for UK loan portfolios has grown from £601m (the June 2012 position shown in the Offering Memorandum) to £750m as of March 2013. The terms of the Senior Secured Notes included a portability clause allowing a one-time change of control subject to the change of control occurring within 18 months of the issue of the Senior Secured Notes and that net debt is less than 50% of the 84 month ERC at the point of change. At the end of March the ratio was 36% and is expected to be at a similar level at completion.
This acquisition reiterates the pre-eminent position of CCM in the United Kingdom debt purchase market and the quality of its franchise.
J. Christopher Flowers, Chairman of J.C. Flowers & Co., said: “We are pleased to finalise our investment in Cabot, which represents an important addition to our portfolio of financial services investments. We look forward to working with the management team to continue executing the growth strategy of the business for the coming years.”
Neil Clyne, CEO, Cabot Credit Management, commented: "The Cabot Credit Management group has grown rapidly following the merger of Cabot Financial and Apex Credit Management and I’d like to take the opportunity to thank AnaCap for its support and the key role it has played in this. The purchase of the group by JC Flowers & Co., who has a great deal of experience in the debt purchase industry, represents a very exciting next step in the development of the group."
For Media Enquiries contact:
PR Manager, Cabot Credit Management
Tel: +44 (0) 7780 495082