• Transaction / Assets
  • Seller
  • Buyer
  • € MM

Fortress acquires Geslico, the recovery business of the savings banks.

If everything goes well, Fortress will sign shortly the acquisition of Lico Corporación, the credit company for consumers and small companies from the savings banks. The operation includes a bonus: the recovery business, with twelve subsidiaries that were merging in Geslico and that are now being transferred to the vulture fund.

Financial sources have confirmed that the operation is practically closed and that only the signature of the transfer of the financing group is pending. Lawyers from both companies have established a date to sign the agreement approved by the shareholders of  Lico Corporación in the meeting held on the 25th  September, but was left pending due to the recovery business.

Finally, the U.S. fund has decided to include Geslico into the operation. This is a holding in charge of recovering the default credits, the recovery of payments, the refinancing and disinvestment in real estate assets, and the counseling and management of default from the savings banks.

The concentration process within the banking financial sector and the disappearance of several savings banks owning Lico Corporación caused a significant fall of the business of Geslico. In view of this situation, the shareholders decided to value the recovery business in order to sell it to a third party.   The main measure taken was the merge of the twelve subsidiaries belonging to the holding, so that a bigger company was created, with the intention of transferring it.

Finally, Fortress has chosen to keep this segment, which it already manages through Paratus,  a  firm  with  headquarters  in  Barcelona  with  a  staff  of  nearly  100.  With  the acquisition of Geslico, counseled by Société Générale, it will double its staff and will create one of the greatest companies focused on the chase on late payers and the recovery of credits.

In all, the distress fund will pay 220 million Euros for Lico Corporación, who employed more than 1100 workers in spite of the dismissal program approved at the end of last year in Lico Leasing. This working force will be transferred to Fortress,that already manages nearly 3000 million Euros in default credits.

One of the most important operations was the agreement with Banco Santander to assume a portfolio of default credits of 1.100 million Euros. A transaction for which it paid only 55 million Euros, as it had a discount of 95% on its value in books.

Lico Corporación, with assets for 745 million Euros, is the mother company of Grupo Lico, founded in 1988, twenty-five years ago. The holding is made of 21 companies that operate in the businesses of leasing, factoring, confirming, renting, corporate finance, payment of late payers, valuation of portfolios, insurance intervention and real estate investment. (…)

Source: El Confidencial

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