Debt purchaser Intrum has entered into an agreement with Lowell to sell Lindorff’s businesses in Denmark, Estonia, Finland and Sweden as well as Intrum Justitia’s business in Norway. The sale agreement was specified by the European Commission as a condition of the combination of the Intrum Justitia and Intrum companies earlier this year.

The transaction value of the acquisition is €730 million on an enterprise value basis, with estimated cash proceeds of about €700 million to be received by Intrum.

James Cornell, CEO Lowell, said “I’m pleased to be extending the Lowell family today. Our shared commitment to innovation and best practice for consumers and clients alike, will significantly strengthen our service proposition across the credit management value chain.”

“I believe that the combination of our operations and cultures is highly compelling and, together, I am convinced that we can continue to drive growth across one of Europe’s most sophisticated credit markets through our combined expertise and experience.”

Trond Brandsrud, CEO of RemCo said “We are excited to welcome our new owners and to become part of Lowell. This means getting an owner with deep expertise and a strong standing within our industry. The combination of the two of us will be extremely compelling.”

Mikael Ericson, President and Chief Executive Officer of Intrum said“The interest in these five units has been very high, which is reflected in the valuation achieved. This is another important step in the successful execution of the combination of Intrum Justitia and Lindorff, forming the new Intrum. The integration process is progressing very well and I am pleased that this transaction gives us the opportunity to further strengthen that process,”

The acquisition will be subject to the approval by the European Commission, as well as customary competition and regulatory approvals. The transaction is expected to be completed in the first half of 2018 and is currently not expected to result in any significant profit and loss impact. Intrum will incur customary transaction costs amounting to approximately 1.5% of the enterprise value of the divestment.