Intrum has entered into an agreement to acquire CAF S.p.A (CAF), the third largest servicer of non-performing loans in Italy In addition, Intrum has acquired a large, diversified debt portfolio serviced by CAF.
The seller of CAF and of the debt portfolio serviced by CAF are affiliates of Lone Star Funds, a global private equity firm. The total purchase price on a cash and debt free basis for CAF and the debt portfolio is about EUR 200 million.
Mikael Ericson, President and CEO of Intrum said “By acquiring CAF and the debt portfolio serviced by CAF, Intrum becomes one of the market leaders in the important Italian market, where we see considerable potential for strong growth in the coming years. CAF has a very good track record of profitable growth through long-standing client relationships and broad experience in collecting in secured and unsecured debt with consumers and SMEs. By combining the acquisition of CAF with a large portfolio investment, we establish our balanced business model for Intrum in Italy, further strengthening us as the undisputed market leader in the European credit management industry”
CAF is one of a few rated credit management companies in Italy enabling it to service exposed banks and certain securitization vehicles for non-performing loan collection. CAF has a team of about 200 people, primarily involved in loan servicing, in three locations in Italy. The service business, excluding returns on investments in portfolios, is expected to have revenues of about EUR 30 million with an EBITDA of about EUR 11 million in 2018.
The debt portfolio acquired is diversified and consists of a large number of debts with consumers and SMEs, being both unsecured and secured debt. The acquisition is expected to be completed during late 2017. CAF will be a part of Intrum’s Western & Southern European region.