Asset Acceptance to Acquire Medical Debt Purchaser PARC
BETHESDA, MD: May 8 2006 – Asset Acceptance Capital Corp. (Nasdaq: AACC), a leading purchaser and collector of charged-off consumer debt, announced that it has agreed to acquire medical debt purchaser Premium Asset Recovery Corporation (PARC) for $16.5 million. Bethesda, MD-based advisory firm Kaulkin Ginsberg Company advised PARC in this transaction.
The acquisition helps Asset Acceptance, based in Warren, MI, to further its position in the healthcare debt purchasing sector. “By combining Asset’s years of broad-based purchasing expertise and robust capital structure with PARC’s team of proven medical debt specialists, we believe this acquisition will allow us to further establish our presence in a rapidly growing niche industry, where Asset stands to become a market leader,” said Brad Bradley, CEO of Asset Acceptance.
Deerfield Beach, FL-based PARC is a leader in the charged-off consumer medical debt purchasing industry. The company has purchased more than $1.3 billion in face value debt since 1997, with around $1 billion being charged-off medical debt.
“As a pioneer in the purchase of non-traditional asset classes, we view this acquisition as a natural progression for Asset Acceptance, in accordance with our stated objective of measured, profitable growth,” commented Asset Acceptance CFO, Mark Redman. “With a strong balance sheet, no debt, and more than $50 million in cash as of December 31, 2005, we took full advantage of the liquidity available to us to add additional expertise and continue PARC’s track record of growth.”
Both PARC and Asset Acceptance acknowledged a cultural fit to the acquisition as well. Chris Conway, President of PARC said, “As a member of the Asset family, we now have the financial resources to be increasingly opportunistic in the purchase of charged-off medical receivables. The team at PARC has long respected Asset as an experienced industry leader that, while significantly larger than we are, shares many of the same cultural attributes. We look forward to being a part of Asset’s long-term growth strategy.”
About Kaulkin Ginsberg Company
Kaulkin Ginsberg Company is the leading advisor to the Accounts Receivable Management industry. Since 1991, the firm has advised on more than 100 ARM transactions with aggregate deal value in excess of $2.5 billion. The Strategic Advisory Group provides merger, acquisition, and valuation advice; operational consulting; and executive search services. The Research Group produces industry-specific publications and custom research products. The Kaulkin Ginsberg family of companies also includes Kaulkin Media, the most popular source of industry information, and Kaulkin Information Systems, provider of secure and affordable document and process management technology. Read more about Kaulkin Ginsberg at www.kaulkin.com.
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