The KRUK Group intends to acquire a Spanish company it has worked with on portfolio valuations and debt collection. The transaction is to boost the organisation’s growth on the new market.
“The acquisition in Spain is to accelerate KRUK’s expansion in Western Europe. Spanish company has operated for 15 years, enjoying excellent reputation with local banks and financial institutions. For several months now, we have worked with it on portfolio valuations and debt collection. Over that period, we have been able to gain an insight into the organisation itself, but first and foremost to get to know its people, who will soon join us. We know and appreciate our Spanish colleagues. I believe that, strengthened by the acquisition, KRUK will soon become a leader on the Spanish debt collection market,” said Piotr Krupa, President of the Management Board of KRUK S.A.
Established in 2002, Spanish company now employs a staff of 118. It offers outsourced debt collection and provides comprehensive credit management services, both on an amicable basis and in courts, on behalf of banks and other business partners. The company’s 2015 revenue came to EUR 4.1m (PLN 18.1m).
“We are acquiring a seasoned and reputable team with a long track record of cooperation with key players on the Spanish market. Particularly important to me is the fact that for many years the company has topped the rankings of its business partners in terms of service quality and recovery records. Today, the company provides services to about 30 business partners, including four out of the top five banks in Spain. We wish to continue and strengthen the company’s services, supported by synergies across both our business lines - credit management and purchase of debt portfolios at the KRUK Group,” said Piotr Krupa, President of the Management Board of KRUK S.A.
KRUK has been very active in Spain in terms of investment in debt portfolios. In April 2016, the company bought its first debt portfolio on the Spanish market from Spain’s BIGBANK AS Consumer Finance. The portfolio’s nominal value was EUR 3m, or approximately PLN 13m. Then, in November 2016, KRUK purchased a consumer debt portfolio from a Carrefour Group company, with a nominal value of EUR 183m (PLN 807m).