The Paragon Group of Companies has acquired a further portfolio of closed UK consumer credit card receivables from MBNA Europe Bank.
The consideration is expected to be £16.2 million (but will be a maximum of £16.9 million), payable at completion on 10 September. The acquisition is expected to be earnings enhancing to Paragon in the current financial year.
This acquisition follows Idem’s previous acquisition of a portfolio of closed UK consumer credit card receivables from MBNA Europe Bank announced on 19 December 2011, for £55.7 million.
“This is the eighth transaction by Idem Capital and brings the total investment in the current financial year up to an expected £115.7 million, resulting in the division becoming an increasingly large part of the group’s activities,” said Nigel Terrington, chief executive of Paragon.
“Idem Capital was the UK’s second largest buyer of consumer loan portfolios in 2011 and we continue to see attractive portfolio acquisition opportunities with the banking and financial sectors increasingly seeking to de-leverage their balance sheets.”