Portico Capital Advises Claims Compensation Bureau on the Sale of a Controlling Interest to Portfolio Recovery Associates
March 15, 2010
Portico Capital Securities announced today that it served as the exclusive financial adviser to Claims Compensation Bureau on the sale of a controlling interest to Portfolio Recovery Associates. “It was a pleasure to work closely with Claims Compensation Bureau and its founder, Brad Heffler, on this pivotal transaction for the Company,” said Casey Hofmeister, Vice President at Portico Capital. "Brad and CCB have been pioneers in providing class action recovery services to the securities and corporate class action litigation markets. With this partnership, CCB will benefit from PRA’s strong capital base and financial services portfolio recovery expertise to strengthen further its leading market position in this expanding industry, bringing its services to new clients and verticals.”
Below are more details from the Company's press release:
NORFOLK, VA, March 15, 2010 -- Portfolio Recovery Associates, Inc. (NASDAQ: PRAA), a company that purchases, collects and manages portfolios of defaulted consumer receivables and provides a broad range of accounts receivable management and payments processing services, announced today that it has acquired a controlling interest in substantially all of the assets of Claims Compensation Bureau ("CCB"), a company that specializes in recovering funds and processing payments due under class action claims settlements for clients.
Portfolio Recovery Associates acquired 62% of Claims Compensation Bureau, LLC, together with the right to buy the remaining 38%, and anticipates the acquisition will be accretive to earnings. Financial terms of the transaction, which was completed on March 15th, were not disclosed.
"This transaction represents another important diversification for Portfolio Recovery Associates into an exciting, related field. CCB pioneered the field of class action settlement recoveries and payment processing, and its founder, Brad Heffler, is the industry's leading expert. CCB counts many household names on its client roster and has expanded even beyond securities class action settlements and payment processing into antitrust class action settlements. We are thrilled to welcome Brad and his team to Portfolio Recovery Associates," said Steven D. Fredrickson, Chairman, President and Chief Executive Officer of Portfolio Recovery Associates.
"We are very excited to be joining Portfolio Recovery Associates, an industry leader that is well-positioned to help us continue to grow and develop new service offerings to roll out to the marketplace. Our company literally created the class action settlement recovery industry, and we intend to remain at its forefront. Like Portfolio Recovery Associates, CCB has been managed from inception by its founders. Both companies share similar cultures and similar management philosophies. We simply could not be a better fit," Heffler said.
Heffler together with Norman Jung, the company's Head of Operations, will retain their leadership positions, having entered into long-term employment agreements in connection with the transaction.
Claims Compensation Bureau, Inc. was founded in 1996 and is a leading provider of class action claims settlement recovery services and related payment processing to corporate clients. Located in Conshohocken, Pa., it has over 300 clients, including Fortune 500 companies and large privately held companies. Its process allows clients to maximize settlement recoveries, in many cases participating in settlements they would otherwise not know existed. The company charges fees for its services and works with clients to identify, prepare and submit claims to class action administrators charged with dispersing class action settlement funds. Portfolio Recovery Associates expects that class action activity will continue to represent a large market with billions of dollars in settlements per year in both the securities market and the anti-trust market, a significant percentage of which is not claimed by eligible companies.
Portfolio Recovery Associates intends to discuss the Claims Compensation Bureau transaction in greater detail during its first quarter 2010 conference call.
About Portfolio Recovery Associates, Inc.
Portfolio Recovery Associates' business revolves around the detection, collection, and processing of both unpaid and normal-course accounts receivable originally owed to credit grantors, governments, retailers and others. The Company's primary business is the purchase, collection and management of portfolios of defaulted consumer receivables. These are the unpaid obligations of individuals to credit originators, which include banks, credit unions, consumer and auto finance companies, and retail merchants. Portfolio Recovery Associates also provides fee-based services, including collateral-location services for credit originators via its IGS subsidiary and revenue administration, audit and debt discovery/recovery services for government entities through both its RDS and MuniServices businesses.
About Portico Capital Securities, LLC
Established in 2000, Portico Capital Securities is the leading merchant bank with an exclusive focus on the Information and Business Services industry. Portico provides M&A and private capital financing advisory services to the leading private and public growth companies in this Industry. For more information about Portico Capital’s services, transactions, and experience, please visit http://www.porticocapital.com
or contact one of the senior members of Portico noted below.
Richard R.S. Northrop, Managing Partner
Casey N. Hofmeister, Vice President