Avedon Capital Partners and management have sold Tesch Inkasso Group, a German debt collection company, to Lowell GFKL Group, a credit receivables management backed by the Permira Funds and Ontario Teachers’ Pension Plan (OTPP).
Tesch Inkasso is headquartered in Wiehl, Germany. Its core business is to recover debt claims, mostly from private debtors in the name of its clients.
Tesch has around 10,000 unique clients and a volume of receivables serviced of approximately EUR2 billion with leading positions in the utilities and eCommerce sectors. Tesch currently employs around 430 trained professional staff in its three locations in Gummersbach, Krefeld and Osnabrück.
Lowell GFKL Group, which specialises in credit receivables management and is backed by the Permira Funds and OTPP, has the ambition to build a leading pan-European business in each of its markets. The acquisition of Tesch further improves diversification by reducing UK centricity, expanding originating segment coverage and increasing third party collections (3PC) as a proportion of revenue. The CEO of Tesch, Thomas Dold, will join the group.
Alexis Weege and Hannes Hinteregger, Avedon Capital Partners, say: “Together with Tesch’s industry leading management team, we implemented within Avedon’s four year holding period, our vision of building a distinctive 3PC debt-service player in the industrial segments with access to off-market portfolio purchases. Tesch ́s strong performance has been supported by its operational excellence in business analytics and scoring abilities, which carries the management ́s handwriting.”
Dold adds: “The Tesch management team is proud of what has been achieved in terms of growth, profitability, strategic positioning and restructuring of the Tesch group in the last few years. The successful and quick development of the company had only been possible based on the open, pragmatic and supportive teamwork between the Avedon team and the Tesch management. It was a challenge and fun at the same time working with our owners to drive Tesch to where we are today.”
Avedon Capital Partners is an independent investment company that provides growth capital in partnership with strong management teams that have distinctive and ambitious growth plans requiring a step change.
Avedon focuses on niches within the following four sectors: (i) industrial & engineering (ii) software & technology, (iii) business services and (iv) consumer & leisure. Since 2003, the team has invested in 19 growth capital transactions with a strong realised track record.
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