Stockholm-based Investor AB has agreed to acquire a 50% stake in Oslo-based international debt collection firm Lindorff Group AB and entered into a partnership agreement with the previous majority shareholder, Altor Equity Partners.
Altor will remain a shareholder of Lindorff with a 50% stake. Lindorff is valued at an enterprise value of 1.16 billion euros (U.S. $1.8 billion), according to the announcement.
Lindorff will be purchased through an acquisition company equally controlled by Investor and Altor. Lindorff's management will also invest in the company.
Investor's total investment is estimated at 360 million euros (U.S. $558.8 million), of which 335 million euros ($520 million) will be in equity and convertibles, corresponding to 59% of the invested capital. In addition, Investor is investing 25 million euros ($38.8 million) in mezzanine debt.
Lindorff operates in three major business areas: Payment – third-party debt collections; capital – purchasing of primarily unsecured written-off debts; and support services, including credit scoring and invoicing services.
Lindorff had pro forma sales of 349 million euros ($542 million) and normalized EBITDA after portfolio depreciation of 102 million euros ($158.5 million).
"With strong market positions in an industry with attractive underlying fundamentals, Lindorff fits Investor very well," Lennart Johansson, head of operating investments at Investor AB, said in a news release. Together with Altor, his company expects to contribute to Lindorff's growth and expansion.
Hugo Maurstad, chairman of Lindorff and partner of Altor Equity Partners, said Lindorff "is well positioned to capitalize on growth from increased credit losses, consolidation and geographic expansion in Europe."
Lindorff CEO Urs Baumann said that, with the support from both Altor and Investor, Lindorff will be able to pursue "the growth strategy we have laid out to build a world-class provider of outsourced receivables management services."
Investor AB is an industrial holding company in the Nordic region.