KRUK looks to acquire a debt collection firm and develop credit management business in Italy

KRUK has been notified of the acceptance of its binding offer to acquire 51% of shares in a company operating on the Italian market of fee-based debt collection (credit management). The offer assumes a target holding of the company’s entire share capital within the next few months. The transaction would fast-track KRUK’s expansion into an attractive market segment of outsourced credit management in Italy, estimated at around EUR 700-800m in annual revenues.
“Another challenge is ahead of us. We are consistently implementing our strategy for 2015–2019, expanding into new business areas. In 2016, we acquired Credit Base – an organisation with strong debt purchase capabilities. Today, we are setting the stage for another deal – the acquisition of an entity operating on the market of outsourced debt collection. We want to use it as a platform to accelerate the provision of credit management services to our Italian business partners. We see strong potential for business growth in the combination of this already efficiently operating debt collection agency, our strong relations with banks on the Italian market and the KRUK Group’s international experience. The debt purchase and credit management businesses will be based within two independent organisations, supporting each other with their knowledge and competence in debt management. Our experience of synergies between these business lines is fully positive. In Poland, we are a leader on both these markets,” says Piotr Krupa, President of KRUK S.A.
The company has operated on the Italian debt collection market since 1994, posting consolidated revenue of EUR 3.1m for 2017. Employing 68 staff, it currently has relations with over 80 business partners from key sectors – including banking, lending, telecommunications, and e-commerce.
“Italy’s market of outsourced credit management is competitive, but we are receiving clear signals from banks and other partners of the need to bring new quality into that market. I am confident KRUK is able to deliver it, leveraging its wealth of experience from other markets. Italian banks still carry EUR 175bn of non-performing debt on their balance sheets. We are prepared to take on that challenge,” adds Piotr Krupa.