Encore Capital Group Inc · NASDAQ:ECPG
Encore Capital — Merger or Acquisition (February 2014)
10 slides from Encore Capital's merger presentation, Feb 10, 2014
Slide 1: Encore Capital Group, Inc. Acquisition of Marlin Financial Group
Exhibit 99.2 ENCORE CAPITAL GROUP, INC. ACQUISITION OF MARLIN FINANCIAL GROUP February 10, 2014
Slide 2: Cautionary Note About Forward-Looking Statements
CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS The statements in this presentation that are not achievements of the Company and its subsidiaries historical facts, including, most importantly, those to be materially different from any future results, statements preceded by, or that include, the per
Slide 3: The Marlin Acquisition Builds on Encore's UK Platform Created by Cabot
THE MARLIN ACQUISITION BUILDS ON ENCORE’S UK PLATFORM CREATED BY THE HIGHLY SUCCESSFUL ACQUISITION OF CABOT Cabot marked Encore's entrance into the UK market • United two market leaders and created a platform in the UK for consolidation and diversification • Cabot investment has been highly successf
Slide 4: Marlin Is a Market Leading Acquirer of Non-Performing, Unsecured Consumer Debt in the UK
MARLIN IS A MARKET LEADING ACQUIRER OF NON-PERFORMING, UNSECURED CONSUMER DEBT IN THE UK Impressive growth track record Market leader in non-performing debt purchasing, with 120-month gross ERC (£m) litigation enhanced collections • Sophisticated, proprietary scorecard to identify optimal litigation
Slide 5: Marlin Presents a Unique and Compelling Opportunity for Cabot to Enhance Its UK Market Position
MARLIN PRESENTS A UNIQUE AND COMPELLING OPPORTUNITY FOR CABOT TO ENHANCE ITS UK MARKET POSITION Investment rationale Creates the UK • Increases Encore's exposure to the high-growth UK market market leader by • Strong relationships with key vendor banks make Cabot+Marlin ERC well-placed to increasing
Slide 6: Combination Strengthens Leading UK Debt Purchaser
COMBINATION STRENGTHENS LEADING UK DEBT PURCHASER Combined ownership structure Key management team Ken Stannard Management Chief Executive Officer Current Marlin CEO Previously Managing Director, Credit Cards, Lloyds Banking 43% 43% 14% Group Managing Director, Capital One UK Head of European Operat
Slide 7: The Transaction Will Position Cabot+Marlin as the Leader in the UK Debt Purchasing Market
THE TRANSACTION WILL POSITION CABOT+MARLIN AS THE LEADER IN THE UK DEBT PURCHASING MARKET 120-month gross ERC ¹ LTM portfolio purchases ¹ £ millions £ millions 2 Cabot+Marlin 1,403 Cabot+Marlin 258 Cabot 1,051 Cabot 143 Arrow 627 Arrow 122 Lowell 531 Lowell 121 Marlin 352 Marlin2 115 Source: Company
Slide 8: The Transaction Presents Substantial Synergy Opportunities Across All of Our Combined Operations
THE TRANSACTION PRESENTS SUBSTANTIAL SYNERGY OPPORTUNITIES ACROSS ALL OF OUR COMBINED OPERATIONS Cabot's non-paying back-book Significant uplift to Cabot's 120- month ERC with Marlin's litigation capabilities expected Marlin's non-litigation Further operational efficiencies back-book Encore, Cabot a
Slide 9: The Transaction Has a Favorable Funding Structure and Financial Impact to Encore
THE TRANSACTION HAS A FAVORABLE FUNDING STRUCTURE AND FINANCIAL IMPACT TO ENCORE • No additional investment Gross transaction value of from Encore £295 million • Marlin's existing bond will remain in place • Equity consideration funded primarily via new Fully funded by debt bond issued by Cabot at t
Slide 10: Marlin Provides an Enhanced Platform for Encore's Sustained Worldwide Earnings Growth
MARLIN PROVIDES AN ENHANCED PLATFORM FOR ENCORE'S SUSTAINED WORLDWIDE EARNINGS GROWTH Marlin substantially enhances Cabot's position in the UK market Growth Profitability Encore EPS accretion Well-placed to IRRs protected even Helps achieve leverage full extent of as competition Encore's 15% long- U
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