MAY 18 2017
On April 12, 2017 Nordic Capital Fund VIII, currently the indirect majority shareholder in Lindorff, notified the European Commission of the intended combination of Intrum Justitia and Lindorff.
Based on its initial investigation, the European Commission has informed the parties of potential competition concerns in five Nordic/Baltic markets, relating to both debt collection and debt purchasing in each market. The parties have therefore proposed a divestment of Lindorff's entire business in Denmark, Estonia, Finland and Sweden as well as Intrum Justitia's entire business in Norway. In Sweden, Denmark, Norway and Finland, the units proposed to be divested are smaller than the units that will remain in the combined group. The European Commission will now assess whether the divestment of the proposed units will address its concerns, and this assessment may include a market test. We expect a final decision from the European Commission no later than June 12, 2017.
The combined group would have pro-forma earnings (EBITDA, excluding impact of synergies and non-recurring items) of approximately SEK 5.0 billion for 2016, of which an estimated 12%-13% derives from the five units proposed to be divested. The combination of Intrum Justitia and Lindorff has been estimated to result in total annual cost synergies in 3-4 years of approximately SEK 800 million. The five units proposed to be divested account for an estimated 30% of the estimated total cost synergies. In line with earlier communication, the combination of Intrum Justitia and Lindorff is also expected to result in revenue synergies, which are not included in the SEK 800 million cost synergy estimate. The units proposed to be divested together have approximately 850 employees.
Press contact:
Nordic Capital
Katarina Janerud, Communication Manager,
NC Advisory AB, advisor to the Nordic Capital Funds
Tel: +46 8 440 50 69
e-mail: katarina.janerud@nordiccapital.com
About Lindorff:
Lindorff has been in the business of helping people manage
credit for over 100 years. Its headquarters are located in Oslo,
Norway, the same city as Eynar Lindorff founded the company back in
1898. Today it has 4,400 people in 12 countries across Europe
helping customers back to a life of sustainable spending. Nordic
Capital Fund VIII is a majority shareholder in the company which
offers services within debt collection and debt purchase as well as
payment and invoicing services. In 2016 Lindorff generated EUR 647
million in net revenue (2015 EUR 534 million). For further
information, please visit www.lindorff.com
About Intrum Justitia:
Intrum Justitia offers comprehensive services, including
purchase of receivables, designed to measurably improve clients'
cash flows and long-term profitability. Founded in 1923, Intrum
Justitia has some 4,200 employees in 21 markets. Consolidated
revenues amounted to SEK 6.1 billion in 2016. Intrum Justitia AB is
listed on Nasdaq Stockholm since 2002. For further information,
please visit www.intrum.com
About Nordic Capital:
Nordic Capital private equity funds have invested in
mid-market companies primarily in the Nordic region since 1989.
Through committed ownership and by targeting strategic development
and operational improvements, Nordic Capital enables value creation
in its investments. The Nordic Capital Funds invest in companies in
northern Europe and in selected investment opportunities
internationally. The most recent fund is Nordic Capital Fund
VIII with EUR 3.5 billion in committed capital, principally
provided by international institutional investors such as pension
funds. The Nordic Capital Funds are based in Jersey, Channel
Islands, and are advised by the NC Advisory entities in Sweden,
Denmark, Finland, Norway, Germany and the UK. For further
information about Nordic Capital please see www.nordiccapital.com