A credit management firm has bought a debt collection agency in a deal which takes its investments into new companies past £100 million this year.
Kings Hill-based debt buyer Cabot Credit Management has taken over Westcot, which is approved by the Financial Conduct Authority (FCA).
It is the firm’s second acquisition in 2017 after it bought utilities debt specialist Orbit Services.
The two new businesses have added more than £200 million a year in collections to the group.
The deal for Hull-based Westcott is expected to be formally approved by regulators within three months.
It comes as Cabot reports an 18% increase in underlying earnings before interest, taxes and other charges to £139 million in the first six months of the year.
It is one of the largest credit management services providers in Europe having invested £2.1 billion in buying more than £21 billion of loans since it was launched in 1998, receiving £2.9 billion in collections from them.
Cabot chief executive Ken Stannard said: “We are delighted to partner with Wescot who shares our ethical values and commitment to high customer service standards.
“This acquisition will allow us to further diversify our product range, reach a wider client base and better meet our clients’ evolving needs. It will create an enlarged group with an improved quality of earnings as we look to take the business to the next level.”
Wescot chief executive Paul Jenkins said: “Now is a good time for us to be joining forces with Cabot.
“Since FCA approval, Wescot has received unprecedented demand for its high quality outsourcing solutions.
“This deal will allow us to strengthen and deepen relationships with financial services clients, offering them best in class products across their needs.”
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