TDR buys Lowell Group from Exponent

The value of the deal has not been disclosed. TDR has been focusing on the debt purchase sector for some time prior to this transaction.

Equity for the transaction was provided by TDR Capital II, which raised €1.75bn at final close in July 2006.

Debt
Leverage details have not been disclosed.

Previous funding
Exponent acquired Lowell in April 2008 from Cabot Square Capital. The value of the deal was not disclosed but was rumoured to be in the £150-200m range. A £100m three-year term senior debt facility, provided by a syndicate consisting of Europe Arab Bank, Lloyds TSB Corporate Markets and nabCapital, supported the transaction. Furthermore, £30m of mezzanine financing was provided by GSC Group and DE Shaw & Co.

A return on investment has not been disclosed.

Company
Lowell is based in Leeds and was formed in 2004 with backing from Cabot. It buys consumer debts from blue-chip organisations and then works with debtors to help them resolve their financial difficulties and pay off what they owe. The company specialises in debts associated with loans, credit cards, store cards, mail orders, overdrafts and retail banking.

The company currently employs approximately 500 people.

People
Jon Rosen is partner at TDR. Tom Sweet-Escott is partner at Exponent.

Advisers
Equity – Quayle Munro (Corporate finance); Linklaters (Legal).
Vendor – Hawkpoint (Corporate finance); Travers Smith (Legal).

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• Topics
• UK / Ireland
• Financials
• Buyouts
• Exits
• TDR Capital
• Exponent Private Equity
• Linklaters
• Hawkpoint
• Secondary buyout