NCO Portfolio Management, Inc., a leading purchaser and manager of delinquent accounts receivable, announced that it acquired the purchased accounts receivable portfolio of Great Lakes. NCO Group owns 63% of NCO Portfolio. NCO Group paid approximately $10.6 million for the net assets and related operations of Great Lakes, subject to certain adjustments. As part of the acquisition, NCO Group and GE Capital signed a multi -year agreement under which NCO Group will provide services to GE Capital. The transaction is expected to be slightly dilutive to earnings in the third quarter of 2002 and is expected to be accretive to the fourth quarter of 2002 and thereafter. NCO Portfolio paid $22.9 million for Great Lakes purchased accounts receivable portfolio. NCO Portfolio funded the purchase with $2.3 million of cash and $20.6 million of non -recourse financing provided by Cargill Financial Services Corporation. This non -recourse financing is collateral ized by the Great Lakes purchased accounts receivable portfolio. The transaction is expected to be accretive to NCO Portfolio’s 2002 earnings. Commenting on the transaction, Michael J. Barrist, Chairman and Chief Executive Officer of NCO Group and NCO Portfolio, stated, “The Great Lakes acquisition represents a great opportunity for both NCO Group and NCO
Portfolio. In addition to the near -term benefits of expanding our domestic receivables outsourcing business, NCO Group will benefit on a long -term basis from the opportunity to develop a strong ongoing business relationship with GE Capital. In addition, this represents the first step in NCO Portfolio’s strategy of purchasing larger more predictable portfolios at reasonable prices. This strategy will be ins trumental in NCO Portfolio’s success in an environment where higher prices on smaller portfolios have made those purchases less attractive. I am also pleased that we have entered into a new strategic financing arrangement with Cargill Financial Services Corporation, a leading financier of credit -intensive portfolio transactions.”
NCO Group, Inc. is the largest provider of accounts receivable collection services in the world. NCO Group provides services to clients in the financial services, healthcare, retail and commercial, utilities, education, telecommunications, and government sectors. NCO Portfolio Management, Inc. is a leading purchaser and manager of delinquent accounts receivable.
