M&A alert. Top Factoring acquired by Intrum Justitia AB for EUR 25 mln

Reconstruction Capital II Limited, the investments fund, which owns Top Factoring, one of the main debt recovery companies from Romania and Catalin Neagu, founder and CEO of Top Factoring, signed a selling agreement of the company’s shares to Intrum Justitia AB, one of the main management loans services companies.

The transaction implies the sale of 100 percent of the Top Factoring shares and the portfolio of non-performing loans owned by Glasro, subsidiary of RC2, for EUR 25 million. The transaction is conditioned by the approval of the regulation authorities.

Top Factoring group, formed of Top Factory SRL and the NPLs portfolio administered by Glasro, registered a net profit of EUR 4.47 million in 2016.

At the same time with Top Factoring’s sale to Intrum, RC2 signed an acquisition agreement of 74.5 percent of the Telecredit IFN SA shares, a non-banking financial institution owned in majority by Neagu. The value of the acquisition is EUR 2.67 million.

„In less than a year, RC2 succeeds a second successful exit, after the Albalact sale. One of the best investments of the fund-Top Factoring, is selling now to Intrum Justitia, a company leader on its segment, that enters on the Romanian market and will ensure a new development stage. RC2 will remain on the Romanian market of financial services through its investment in Telecredit,” says Ion Florescu, majority shareholder of the investments fund.

RC2 invested initially EUR 3 million in Top Factoring and during time it registered dividends valued at EUR 6.7 million. The annual rate of profitability of the investment during the 10 years of ownership is approximately 20 percent.