Two strategic acquisitions in France

Intrum Justitia has acquired the French companies Cronos group* and SSE**.

Cronos and SSE have together 80 employees, a revenue of EUR 7.3 million (2007) and an operating margin just above thirteen percent. The acquisitions raise Intrum Justitia’s market share in France to 20 percent and increases revenues in The Southern Region by 11 percent.

“The acquisitions fit perfectly with Intrum Justitia’s strategy to improve our market position in the large markets France, Germany, Spain and Italy”, says Monika Elling, Acting CEO of Intrum Justitia.

“Through these acquisitions we invest in additional expertise in credit management services, in order to face up to our clients challenges in the current financial situation in the best possible way”, says Pascal Labrue, Regional Managing Director Southern Europe, and continues; “Furthermore, Cronos and SSE together command a strategically important market position, particularly in the banking sector and in B2B, creating an opportunity to build an even stronger position in these segments”.

The Cronos group and SSE will be consolidated into Intrum Justitia’s French organization in 2009. Synergies are expected by coordinating overlapping operations and introducing Intrum Justitia’s scoring and technical platform.

The purchase price is based on a cash and debt free valuation of EUR 6.6 million, which produces valuation multiples comfortably below Intrum Justitia's. The large part of the purchase price is attributable to goodwill. The EPS impact including synergies, integration costs and amortization of intangibles is expected to be close to zero in 2009 and turning to slightly positive in 2010.

* Centre de Gestion Financiere et Contentieux SAS and its wholly owned subsidiary CRVM SAS
** Société de services d’entreprises