Barclays sells Cabot
Article Date: Apr 11 2006
Barclays Private Equity has passed control of debt purchase group Cabot Financial over to European investment group Nikko Principal, via a £275 million secondary buyout. The deal secures a triple return on investment for Barclays, which first backed the business in January 2004.
Now employing over 300 people, Cabot commands a 15 per cent stake of the UK debt purchase, managing 1.3 million customer accounts and generating £55 million of revenue last year. With Nikko’s backing, the company now plans to expand its activities into Continental Europe.
‘Cabot Financial represents a very significant opportunity for us to build on the UK market leader’s position in the fast-growing consumer debt purchase market and expand into other high growth markets overseas,’ Nikko chief executive Brian Berry explains. ‘We believe we have acquired an excellent platform from which to achieve this.’
Despite completing a rapid and profitable exit, the transaction also sees Barclays re-invest £25 million back into the business, managing director Owen Clarke elaborating that ‘this is an increasingly competitive market but it continues to grow strongly… we are therefore pleased to be re-investing.’
