Encore Capital Group – ECPG – Announces Acquisition of Propel Financial Services
Encore Capital Group, Inc., (NASDAQ:ECPG) a leader in consumer debt buying and recovery, today announced the acquisition of Texas-based Propel Financial Services, LLC, a leader in the tax lien acquisition industry.
ECPG President and CEO Brandon Black said: “Propel has an excellent track record of deploying capital at attractive returns and provides a valuable and affordable service for consumers, consistent with Encore’s core competencies and principles. The acquisition of Propel will capitalize on Encore’s expertise in consumer-level analytics and operational capabilities, will leverage the company’s deep experience assisting financially stressed consumers, and will put ECPG in position to build a significant tax lien acquisition business. The acquisition allows Encore to expand our work with financially stressed consumers and to help a new group of people work toward financial recovery.”
Propel was founded by Texas entrepreneur Red McCombs and Jack Nelson in 2007. “I’m very excited to see Propel continue to grow with Encore Capital,” said Mr. McCombs. “Propel is a wonderful company and this is the next step for a great group of people as they look to expand their business.”
The company’s core business – tax lien transfers – assists property owners who are delinquent on their property taxes by acquiring tax obligations from local municipalities and working with property owners to create mutually agreeable payment plans. By assisting property owners with their tax obligations, tax lien transfers provide important revenue to municipal governments.
Propel will retain its name and Texas operations, and current customers will experience a seamless transition. There are no planned personnel changes, and the company’s leadership will remain in place. “We built Propel to help homeowners and businesses experiencing financial difficulties pay the much needed property taxes used to maintain and grow their communities,” said Propel President Jack Nelson. “Becoming a part of the Encore family is the next step for Propel as we look to increase the positive impact we have on Texans and expand our consumer-friendly services nationwide.”
ECPG acquired Propel at a purchase price of $187 million, utilizing a new $160 million credit facility and existing cash and credit facilities. The acquisition is expected to be accretive to 2012 earnings.
About Encore Capital Group, Inc.
Encore Capital Group is a leader in consumer debt buying and recovery. The company purchases portfolios of defaulted consumer receivables from major banks, credit unions, and utility providers and partners with individuals as they repay their obligations and work toward financial recovery.
About Propel Financial Services
Propel Financial Services is a Texas-based private refinancer that assists property owners who are delinquent on their property taxes by structuring affordable monthly payment plans. Since its founding in 2007, Propel has focused primarily on the property tax financing industry.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht. |
