Intrum Justitia has since 2003 successfully co-operated with Goldman Sachs in purchasing large written off debt portfolios through two joint venture companies, SDF 50 AG and SDF 75 AG. The co-operation has resulted in investments in Germany, Spain and the UK.
The joint venture parties have now reviewed and analyzed these jointly owned portfolios and have concluded that these have reached a size for which joint funding and investor management is not optimally efficient.
Therefore, Intrum Justitia has acquired Goldman Sachs share in the joint venture companies holding these portfolios. The portfolios consist of over 300,000 cases and have a gross collection value amounting to over EUR 2,000 million (SEK 21,000 million), with the German portfolio constituting over two thirds of the total investment.
Intrum Justitia has been servicing the portfolios since their purchase, understands them well and has valuable data on them. In addition to an investor performance in line with current market conditions Intrum Justitia will, through the acquisition and ownership restructuring, achieve additional benefits from cost reductions.
We are pleased to have come to an agreement on this buy-out on terms that are representative for current market conditions, says Lars Wollung, president and CEO, Intrum Justitia. We value highly the excellent co-operation that we have had so far with our partner, Goldman Sachs, and we are looking forward to continuing our joint efforts and utilising our respective strengths for our mutual benefit with respect to future investment opportunities. The acquisition strengthens our ability to reach the Purchased Debt investment level guidance of SEK 700 million.
L.D.