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National Asset Recovery Services, a St. Louis-based provider of accounts receivable management (ARM) and business process outsourcing (BPO) services, has announced the recapitalization by an affiliate of H.I.G. Capital, a global private equity firm, in conjunction with the Reprise Management Group.

NARS is an ARM/BPO provider in the markets of Central America and the Caribbean, with flagship operations in Panama City, Panama and Montego Bay, Jamaica. The company also has domestic sites in St. Louis and Cape Girardeau, Mo.

H.I.G. Capital and Tim Bauer formed Reprise Management Group in April 2009 for the purpose of making strategic investments in leading ARM companies. NARS is Reprise's first acquisition and is expected to be a platform on which its first-party ARM services growth will occur.

"NARS is the first piece of the Reprise puzzle. NARS CEO Chris Buehrle and his team have built an exceptional business," says Bauer. "Its on-shore/near-shore strategy is timely and efficient and NARS is uniquely poised for additional growth."

H.I.G. Capital Managing Director Jeff Zanarini adds, "H.I.G. has had great success with its portfolio companies specializing in the ARM/BPO space. We view NARS as an excellent platform and are looking to augment NARS' impressive organic growth through strategic add-on acquisitions, having already commenced discussions regarding several key opportunities."

Christopher H. Buehrle, president and CEO at NARS, adds, "This investment allows NARS to continue to provide our client partners with exceptional service, deepen our service offerings, and continue fueling our strong year-over-year growth." All of NARS' existing management will remain with the company.

NARS services several Fortune 500 companies across a variety of industries including telecommunications, financial services, automotive credit and consumer products. NARS employs over 3,000 service professionals, and last year was named by Inc. magazine as one of the fastest growing companies in St. Louis.

Greenberg Advisors represented H.I.G. Capital and Reprise. "This transaction is unique because, in the current environment, it is rare to see transactions that work so well for both buyer and seller," says Brian Greenberg, managing director and CEO. "The primary reason for this is that NARS is performing very well, has significant scale, and offers niche services from an effective on-shore/near-shore platform."

In contrast, according to M&A data provided by Greenberg Advisors, roughly 35% of ARM transactions done year-to-date involved distressed sellers.

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