U.S. private equity firm J.C. Flowers & Co., run by ex-Goldman Sachs banker Christopher Flowers, will acquire British debt collector Cabot Credit Management from AnaCap Financial Partners.

Terms of the deal were not disclosed but the Financial Times reported the price is an estimated $1.2 billion (approximately 800 million pounds) including debt.

J.C. Flowers had been searching for investments in the British financial services industry after establishing a small UK banking business two years ago. One Savings Bank was created in February 2011 when Flowers injected funds into the mutually owned Kent Reliance Building Society.

J.C. Flowers later financed the launch of mortgage lender Castle Trust and has been linked to possible bids for the 315 bank branches RBS is required to mothball by EU regulators. That mandatory sale is known as Project Rainbow.

Cabot Credit buys and manages consumer debt from banks and other lenders when they want to remove it from their books or stop managing it internally. It was established in April 2011 after the merger of Cabot Financial and Apex Credit Management, which then was acquired by AnaCap and its investors, Partners Group and Morgan Stanley Alternative Investment Partners.

Joe Giannamore, co-managing partner at AnaCap, told the FT that with the sale to J.C. Flowers his fund will more than double its initial investment.

Cabot Credit has an estimated $11.7 billion (7.7 billion pounds) of assets under management covering more than 3.5 million customer accounts. Last year, it grew its annual earnings by 23% to an estimated $169.5 billion (111 million pounds).

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