Leeds-based debt collector put up for sale by owner

The private equity owners of debt collectors Lowell Group has put the company onto the market.

Exponent Private Equity has called in financial advisers Hawkpoint to sell the Leeds-based group, which buys debt from banks and credit card companies and then recovers money from customers.

Lowell was originally set up in 2004 with financing from UK buyout group Cabot Square Capital, a provider of investment capital for small and medium-sized businesses in the UK and Western Europe.

Exponent originally bought Lowell in April 2008 for £200 million but is reportedly looking to return profits on purchases to investors, so it can raise new money. It is asking £400 million for the company, which has performed relatively well throughout the recession.

However, some industry experts are suggesting that this is an over-inflated figure, given that the company still made a pre-tax loss of £8.5 million for the year to August 2009.

The business employs more than 300 people at its headquarters and call centre in Leeds.

Exponent also counts train ticket website thetrainline.com and the Radley handbag brand amongst the other businesses contained within its portfolio.

Exponent has also put Trainline on the market for between £300m and £400m. The business has benefited from a lift in numbers of people seeking cheaper train tickets online. Tickets sold in 2009 were worth £793m, a 7.5 per cent jump on 2008. The private equity outfit bought the business in 2007 for £160m from Virgin.

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