Portfolio Recovery Associates Inc. (PRA), a Norfolk, Va.-based debt buyer and collections giant, on Monday announced it has acquired Mackenzie Hall Holdings Ltd., a large UK debt collection and purchasing group.
PRA purchased 100% of the equity interest in Mackenzie Hall for a maximum price of approximately $51 million in cash. PRA expects the acquisition will be immediately accretive to earnings.
Mackenzie Hall, based in Kilmarnock, Scotland and founded in 2003, offers outsourced and contingent consumer debt recovery on behalf of banks, credit providers and debt buyers, as well as distressed and dormant niche portfolio purchasing. The company employs an estimated 170 people at its headquarters and contact center in Kilmarnock.
"This acquisition expands PRA's presence into new geographic markets, further diversifying our revenue and available service offerings," says Steve Fredrickson, PRA's chairman, president and CEO. "Our plan includes providing both expertise and capital to the Mackenzie Hall team, permitting them to accelerate their already impressive track record of growth and innovation. I'm proud to welcome all of Mackenzie Hall's employees to the PRA team.
Paul Mackenzie, CEO at Mackenzie Hall, says PRA's investment ensures Mackenzie Hall's position as the UK's "most exciting and progressive consumer debt collection and debt purchase agency."
"It provides us with unparalleled support in our pursuit of accelerated growth, both in our core contingent collections service, which remains at the heart of the business, and in our ongoing purchase of niche portfolios," he says.
Mackenzie and his executive management team have entered into long-term employment agreements with PRA.
PRA reported across-the-board gains in cash collections, earnings and revenues for the Q3 2011 ended Sept. 30. Q4 results have not been released.
Cash collections for Q3 increased to a record $182.2 million in the quarter, up 33%. Call center and other collections rose 24%, external legal collections increased 35% and purchased bankruptcy collections gained 40%.
