M&A Activity • Jun 22, 2016
M&A Activity
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AXACTOR ACQUIRES CS UNION AND ENTERS INTO A STRATEGIC PARTNERSHIP WITH BANCA SISTEMA IN ITALY
Oslo, 22 June 2016 - Axactor AB (publ.) ("Axactor") acquires
CS Union in Italy. CS Union is a leading independent debt
purchase/debt collection company with EUR1bn under
management. Banca Sistema will continue as a 10% shareholder
of the new entity and will provide attractive financing as
part of the strategic partnership.
Located in Piemonte, CS Union has operated in the Italian
market for more than 20 years and has approximately 105
employees and an external network of more than 100 field
collectors. Over the last four years, the company has
acquired 21 NPL portfolios with a total face value of more
than EUR710m. CS Union has a lean but highly scalable
collection platform to manage EUR290m in debt on behalf of
banks and financial institutions. In 2015, the company
delivered revenues of EUR8.2m and EBITDA of EUR2.1m. Prior
to this transaction, Banca Sistema has been a 26%
shareholder of CS Union. The bank will retain 10% ownership
stake post-closing of the transaction, and will continue the
partnership with Axactor in Italy. The partnership will
include an attractive financing arrangement, board
representation and joint market development in Italy, based
on a 3-years Shareholders' agreement.
Axactor will pay EUR9.9m for 90% of the shares in CS Union
of which 60% will be settled in cash and 40% in Axactor
shares. 75% of the shares will be subject to a 24-months
lock-up period while the remaining 25% will have a 12-months
lock-up period. Banca Sistema will realize a capital gain
from the stake sold to Axactor of c. EUR2.3m before taxes.
Closing of the transaction is expected by the end of June.
Stefano Inguscio and Davide Graneris, the two founders of CS
Union and majority shareholders, will continue to support
the future development of the Company as members of the new
management team.
The gross Italian NPL (non-performing loans) stock is in
excess of EUR200bn, grown five times larger since 2008. NPL
portfolios with a value of approximately EUR19bn was
disposed last year, and hence, Italy remains one of the
largest global markets for Non-Performing Assets. With the
size and the expected continued growth of the Italian NPL
market, Axactor regards this market particularly important
in its Pan-European growth strategy and the ambition is to
become a leading player in the debt collection/debt purchase
segments. The regulatory environment has shown new
favourable developments during the last year. This includes
improving procedures and shortening foreclosure timelines
via legal and regulatory measures such as facilitating NPL
portfolio funding (GACS) and improving the tax regime. Also,
the newly established Atlante fund is intended to be an
accelerator of deal flow.
"We are excited about the acquisition of CS Union and the
strategic partnership with Banca Sistema, and are looking
forward to leveraging our joint talent, resources and
capabilities in the Italian market. The CS Union management
team has built a very successful company over the years by
focusing on high quality customer service and a very
efficient collection platform. Through this acquisition, we
will enhance our European footprint and strengthen our
partnerships in the financial services sector", said Endre
Rangnes, CEO of Axactor.
Gianluca Garbi, CEO of Banca Sistema, said: "In the last
three years we have supported the NPL market in Italy by
investing in the growth of CS Union. This 10% strategic
stake in the new business represents a recognition of the
economic value created and a new starting point for CS
Union, from today as part of a global network that we will
keep supporting it in partnership with Axactor. Our
investment has helped to build the story to date and future
results will be directly evaluated by the market, as Axactor
is a listed company".
PwC Deals acted as sole Strategic and Financial Advisor to
the transaction and PwC Legal as the Legal Advisor to
Axactor.
About Axactor
Axactor Group is a debt collection and debt purchase
company, with operations in Italy, Norway and Spain. The
company has a Nordic base and an ambitious Pan-European
growth strategy, which targets the market for non-performing
loans (NPL) in Europe. This market is estimated to about
EUR1,500 billion, and Axactor's main focus is debt
collection and purchase of NPL portfolios. After the
acquisition of CS Union, Axactor will have approximately 700
employees.
About Banca Sistema
Banca Sistema was founded in 2011, as a bank specialized in
financing and managing trade receivables owed by the Italian
Public Administrations, thereby entering a sector of the
Italian financial system aimed at granting liquidity to
corporate entities in their business dealings with the PA's,
mainly through factoring and credit management services.
With main offices in Milan, Rome and London, during this
time Banca Sistema has extended its activities and services
available both to business and retail Clients.
As an independent financial operator characterized by a
diversified business model, Banca Sistema can offer, today,
recourse and non-recourse factoring services. This includes
receivables between private companies, yearly and quarterly
VAT receivables refunds, current accounts, time deposits
with durations up to 10 years, guarantees, securities
deposit, reverse factoring, certification of Public
Administration credits, salary and pension backed loans, and
small and medium enterprises financing.
The Bank is also active in the purchasing and management of
non-performing financial and trade receivables as well as
management and debt recovery from individuals, thanks to its
shareholding in CS Union S.p.A..
Contacts:
CEO Axactor:
Endre Rangnes
Tel. +47 482 21 111
E-mail: [email protected]
CFO/Investor Relations Axactor
Geir Johansen
Tel. +47 477 10 451
E-mail [email protected]
Investor Relations Banca sistema
Carlo Di Pierro
Tel. +39 02 80280.358
E-mail [email protected]
Media Relations Banca Sistema
Anna Mascioni
Tel. +39 02 80280.354
E-mail [email protected]
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