Background

  • Sabadell is the fourth largest private banking group in Spain and has a market capitalization of c. €10.5bn. It is also established in Florida (USA) and Andorra. Banco Sabadell operates in 2,343 branches throughout Spain and abroad (2,295 branches in Spain), serving over 6.5 million clients (8,900 new customers per week) and employing c.18,000 people

Process

  • DC Advisory (DC) has advised on the sale of Banco Sabadell’s (Sabadell) debt collection unit

Outcome

  • Lindorff is one of the leading European providers of debt collection services with more than 100 years of history. Founded in Norway in 1898, it has grown into one of the biggest and fastest growing debt-collection companies in the world
  • This transaction has positioned Lindorff as the top player in the Spanish market
  • The final result of the transaction is highly beneficial for Banco Sabadell for the following reasons:
    • Improves efficacies and efficiencies within its early and NPL debt collection processes, through the implementation of best practices in both its current stock and the future inflows;
    • Associates the debt collection activity of the bank with a leading company in the debt collection industry (Lindorff);
    • Strengthens the balance sheet with the capital gain obtained, which totals approximately €162m