Collection House Limited (ASX:CLH) is pleased to announce it has reached a binding agreement to acquire the entire Purchase Debt Ledger (PDL) and other selected assets (including plant & equipment, intellectual property and the Sydney lease) from ACM Group Limited (“ACM”). ACM is one of the largest privately-owned collection agencies in Australia, and will cease collection operations after this transaction, with the founder retiring from the industry.
The total cash consideration will be $40.3m with the purchase expected to settle by the end of March. The acquisition will be funded from existing cash reserves and a $50m facility expansion from CLH's banking partners. CLH remains vigilant to other opportunities, with $33m residual capacity under its existing finance facilities and access to approximately $100m off balance sheet financing through its relationship with Balbec Capital LP.
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