Lowell GFKL Group, a European leader in credit receivables management backed by the Permira Funds and Ontario Teachers’ Pension Plan, announced that it has entered into an agreement to acquire Tesch Inkasso Group from Avedon Capital Partners and the other existing shareholders. Closing is subject to certain regulatory approvals.
After acquiring Austrian IS Inkasso Service in April, this is Lowell GFKL Group’s second acquisition since its formation in October 2015. This complementary addition strengthens the Group’s position in its core German market. It underlines the Group’s ambition to build a pan-European business with leadership positions in each of its markets. The transaction further improves diversification in terms of addressed verticals and business mix. It will deliver a range of synergies to the enlarged Group.
Tesch Inkasso is a leading German 3PC company with several thousand unique clients and a volume of receivables serviced of c. €2 billion. Founded in 1985, it was acquired by Avedon Capital Partners in 2012 and has itself acquired Transcom CMS and Mediafinanz in recent years.
Lowell GFKL Group is considering various forms of financing to fund the transaction including loans and debt securities.
Tesch Inkasso has a leading position in the utilities and eCommerce sectors and has complementary expertise to the Lowell GFKL Group in many other sectors. It shares the Group’s commitment to building long-term client relationships and respectful, fair engagement with consumers. The CEO of Tesch Inkasso, Thomas Dold, will join the Group having delivered strong organic growth and an impressive new client win rate over the past few years.
Thomas Dold, CEO Tesch Inkasso, said: “I am delighted that Tesch Inkasso will join forces with the Lowell GFKL Group and I look forward to combining our areas of expertise to drive growth in the attractive German market.”
James Cornell, CEO Lowell GFKL Group, said: “I’m very pleased to welcome Thomas and the team at Tesch Inkasso to our Group. This combination significantly strengthens our collective position in Germany and, together with our pioneering approach to consumer insight, gives us the platform to serve even more clients and consumers with our products and services, which span the credit management value chain.”
About Lowell GFKL
The Lowell GFKL Group was created in October 2015 following the merger of German and UK market leaders GFKL and the Lowell Group. This union created one of the largest credit management companies in Europe. It benefits from the backing of global investment company Permira Funds and Ontario Teachers’ Pension Plan (OTPP).
The Group’s experience, expertise and core strengths in data analytics and operational efficiency underpin its vision to be the most reputable and trusted partner in the European credit management sector.
About Tesch Inkasso
Tesch Inkasso was founded in 1985 by Siegward Tesch, has around 400 colleagues and is based in Gummersbach, Germany – in proximity to the GFKL headquarters in Essen. The company was acquired in 2012 by Avedon Capital Partners, the Dutch-German mid-market PE firm. Within 3PC, the business is a market leader in Utilities and has a strong presence in the Insurance, Financial Services, eCommerce, Telco, Travel and Public sectors.
Recently the business has moved into Debt Purchasing (DP) through proprietary portfolio acquisitions from its existing asset base. Avedon Capital Partners has pursued a market consolidation strategy with recent acquisitions including Transcom CMS and Mediafinanz. www.tesch-gruppe.com
Source: Lowell Group UK