Large Australian Collection Agency Buys Debt Purchaser

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00038110-large-australian-collection-agency-buys-d/

Repcol, one of Australia’s largest debt collection agencies, has announced the acquisition of Javelin SPV1 Pty Ltd, an Australian debt purchasing company, for $800,000.

Repcol advised that the acquisition was funded with bank debt, which will increase the company?s overall gearing to approximately 30 per cent and reduce its weighted average cost of capital.

The acquisition will be cash flow positive to Repcol immediately as repayments of the bank debt will be lower than the funds Repcol will receive from Javelin debt collections.

Repcol managing director, Mr John Wreford said the acquisition of Javelin would enable Repcol to provide greater transparency with respect to the value of its bonus commission entitlement.