Fabrity Holding S.A

M&A Activity • Aug 13, 2018

A merger of the subsidiary Aforti Collections S.A. with a debtrecovery company

The board of Aforti Holding S.A. ("the Company", "the Issuer")headquartered in Warsaw hereby announces to the public that on 10thAugust 2018 a subsidiary of the Company: Aforti Collections S.A.headquartered in Warsaw ("the Subsidiary", "Aforti Collections") hasconcluded a contract (hereinafter: "Agreement") for the purchase of 300shares with a par value of PLN 1,000.00 each, representing 76.92% of theshare capital of a company from the debt collection industry: LifeBeltsp. o.o. with its registered office in Lublin (hereinafter: "LifeBelt").

The Issuer does not disclose the value of the transaction because of thetrade secrets of the transaction applicable to both sides.

In connection with the concluded Agreement, the following companies:LifeBelt and Aforti Collections plan in the fourth quarter of this yearmake the connection process to use synergy and mutual exchange of theircompetitive advantages. LifeBelt will complement the structures ofAforti Collections by including an experienced team of managers, as wellas by providing an innovative, proprietary IT system that allowseffective service for both large companies and entrepreneurs from theSME sector, offering B2B services. At the same time LifeBelt will gain aprofessional commercial department and a shared services center (ITsupport, accounting and HR services, legal and marketing services),which were previously outsourced by this company. Following the legalfinalization of the merger of both entities, their activities will becarried out under the common brand: Aforti Collections S.A..

Combination of the above companies will strengthen the position ofAforti Colections on the debt collection market and will allow for thetransfer of solutions used in the recovery of mass claims to the sectorof small and medium-sized enterprises (SME).

Aforti Collections will also develop a common commercial strategy thatwill take into account the know-how and experience of both companies inthe debt collection industry.

LifeBelt, which began operations in January 2015, is an entityspecializing in providing services related to receivables management,amicable debt collection, direct and court enforcement, industrialespionage and detective services. LifeBelt has an experienced andqualified team of 70 specialists. In 2017, LifeBelt serviced a debtportfolio worth PLN 789 million, while in the first half of 2018 thisvalue amounted to almost PLN 220 million.

The company's clients include well-known loan firms, leasing company,bank, debt servicing companies and companies from the marketing industry.

Conclusion of the Agreement constitutes the implementation of the AfortiGroup's development strategy for 2018-2020 in terms of development ofsubsidiaries' structures in Poland.

Legal basis: Article 17 paragraph 1 of the MAR - confidential information