US debt buyer Portfolio Recovery Associates (PRA) has entered the UK market with the acquisition of Mackenzie Hall Holdings.
Under the terms of the transaction, PRA purchased 100% of the equity interest in Mackenzie Hall for a maximum price of £33.5m (approximately $51 million) in cash. PRA anticipates the acquisition will be immediately accretive to earnings. The company has operations in 10 states, and more than 2,500 employees.
Based in Kilmarnock, Scotland, Mackenzie Hall offers outsourced and contingent consumer debt recovery on behalf of banks, credit providers and debt purchasers as well as distressed and dormant niche portfolio purchasing. The company employs approximately 170 people.
“This acquisition expands PRA’s presence into new geographic markets, further diversifying our revenue and available service offerings,” said Steve Fredrickson, chairman, president and chief executive officer of PRA. “Our plan includes providing both expertise and capital to the Mackenzie Hall team, permitting them to accelerate their already impressive track record of growth and innovation. I’m proud to welcome all of Mackenzie Hall’s employees to the PRA team.”
Paul Mackenzie, chief executive of Mackenzie Hall Holdings, welcomed the acquisition, stressing that PRA’s investment would ensure continuity and financial strength. “This deal provides us with unparalleled support in our pursuit of accelerated growth, both in our core contingent collections service, which remains at the heart of the business, and in our ongoing purchase of niche portfolios.”
Mackenzie and his executive management team have entered into long-term employment agreements with PRA.
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