The European private equity firm JZI has sold Mackenzie Hall, a leading UK consumer debt collection and purchase group, to Portfolio Recovery Associates, Inc. (PRA), a US market leader in the consumer debt purchase and collection industry, for a price of US$53 million.
Mackenzie Hall is one of the UK’s fastest-growing businesses in consumer debt recovery. The business was founded in 2003 and since 2006 has been majority owned by JZI, the European private equity firm. Paul Mackenzie, CEO and founder of Mackenzie Hall, and his senior executive team have entered into long-term employment agreements with PRA. Commenting on the acquisition by PRA, Paul said: “This deal confirms Mackenzie Hall’s position as the UK’s most exciting and progressive consumer debt collection and debt purchase agency. It 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 on-going purchase of niche portfolios.”
Oaklins Cavendish, based in the UK, ran a competitive, focussed sale process, which targeted both strategic and private equity buyers. PRA was identified early on by Oaklins' international network and emerged as the preferred bidder due to the value they placed on the business and their clear strategy to use Mackenzie Hall as a platform to expand into the UK market. PRA intends to provide both expertise and capital to Mackenzie Hall to drive further growth in the business.
Martin Wright, the JZI Partner who led the investment in Mackenzie Hall, commented: “In bringing PRA to the table, Oaklins Cavendish identified a buyer who recognized the value created by Paul and his team during the period of our ownership and who has an exciting vision for the future of the business. The team helped ensure the price paid by PRA reflects this and that the deal completed in a timely fashion. It represents a very successful investment for JZI.”
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