We don’t often discuss debt collection outside of the United States, but collections news continues to rule headlines all over the world. In the news today, Frankfurt buyout group Permira entered into an agreement to buy large German debt collection firm GFKL from Advent.
The rise of e-commerce in Germany is driving the growth of the country’s debt collection industry, but just like the United States, Germany has felt the sting of economic hardship, especially in the area of energy.
According to Permira representatives, the business is taking advantage of the fragmented debt collection market in Germany to increase their size and consolidate other firms into their fold.
While the specific amount paid has not been released, GFKL’s net worth has risen in recent years from 196 million euros in 2013 to 244 million euros in 2014. Insiders say this deal was worth more than 600 million euros ($684 million).
Adapted from http://www.reuters.com/.