PR - Intrum Justitia Acquires Belgian Collectors

Intrum Justitia has acquired the Belgian holding company Solutius Belgium NV, which in turn owns two debt collection agencies in the Belgian market, Juri-Desk and Krebes. Juri-Desk is a B2C collection agency, while Krebes handles both B2C and B2B. The companies have a total of 40 employees, revenues in 2007 of nearly $9.5 million and EBIT of nearly $3 million. The acquisition strengthens Intrum Justitia’s market-leading position in the Belgian CMS market.

“Our Belgian operations have developed convincingly, with earnings exceeding the Group’s financial target,” says Michael Wolf, CEO of Intrum Justitia. “With Juri-Desk’s and Krebes’ client base, combined with Intrum Justitia’s market position and established infrastructure, our Belgian operations will have all the prerequisites to broaden their service offering and convince more clients to outsource their CMS business.”

The purchase price is based on a valuation of EUR 18 M excluding net debt, which produces valuation multiples below Intrum Justitia’s. The large part of the purchase price is attributable to goodwill. Apart from EBIT generated by the acquired companies, significant synergies are expected as well. The acquisition, including amortization of intangible assets, financing costs and other related costs, is expected to have a neutral net effect on net earnings in 2008 and a positive net effect as of 2009. Key members of the acquired companies’ management will stay on as members of the local management team.