National Asset Recovery Services Acquires Leading Domestic Third-party Collections Agency
November 18, 2010 – H.I.G. Capital announced that its portfolio company, National Asset Recovery Services, Inc. (NARS), has acquired Pinnacle Financial Group (Pinnacle), a leader in third-party debt collection services. Pinnacle is a leading ARM firm with a diverse, blue chip client base of hundreds of clients across a variety of end markets, including healthcare, national bank/credit card issuers, education, telecommunications, consumer/retail, auto loans and debt buyers. Greenberg Advisors advised H.I.G. in the transaction.
The Pinnacle management team, led by CEO Tony Michel, will continue with NARS and will play a leadership role in helping operate and grow NARS’ existing third-party collection services. Pinnacle’s three domestic sites, which will continue operating under the Pinnacle name, add depth and expertise to NARS’, existing ARM operations. The Pinnacle acquisition will increase NARS’ domestic footprint to five call centers, for a total of seven sites in the United States, Jamaica and Panama. The combined companies will employ approximately 3,500 people. Christopher H. Buehrle, NARS CEO, commented, “With their excellent reputation and capabilities in the third-party collections arena, Pinnacle is a welcome addition to NARS, significantly increasing the combined capacity of both companies. This acquisition is a positive first step as we continue to grow and enhance our suite of services and we welcome the Pinnacle family to the NARS family of employees.”
Tony Michel, Pinnacle CEO, added, “The strategic and cultural fit between NARS and Pinnacle convinced us to move forward with this transaction. The entire Pinnacle team is excited to join a larger platform that will allow us to provide new services to our clients. Members of the combined NARS/Pinnacle management team share a passion for excellence and a vision for the future of the industry.” Kaulkin Ginsberg advised Pinnacle in the transaction. Pinnacle is the third recent ARM investment for H.I.G. Capital in collaboration with the Reprise Management Group (Reprise). “This acquisition continues H.I.G.’s strategy of investing in high quality assets with strong management teams and excellent client relationships across the ARM sector, following our prior investments in NARS and TRAKAmerica,” commented Jeff Zanarini, Managing Director at H.I.G. Capital.
Brian Greenberg, CEO of Greenberg Advisors, noted, “This is the third transaction in which we’ve advised H.I.G. and Reprise. It appears to be a great strategic fit for seller and buyer as both seek continued growth for their businesses and offer each other numerous opportunities for revenue expansion. We’re glad to see that this investment platform has progressed so well for Reprise and H.I.G., given that it began with only a senior industry executive, an idea and us.”
About Greenberg Advisors
Greenberg Advisors, LLC is among the most experienced and active strategic advisors to owners, executives and investors in the Accounts Receivable Management (ARM) industry worldwide. With nearly 15 years of experience dedicated to the ARM sector, the firm’s principal has completed more than 60 M&A, corporate finance and strategic advisory transactions in ARM. Clients have included Fortune 500 firms, public and privately-held entities, and private investment firms, as well as many entrepreneurial and family-owned businesses. Transaction experience spans virtually every aspect of the ARM sector to include a variety of servicers and purchasers of consumer or commercial debt, BPO firms, vendors and technology providers to the industry. The firm offers proven advisory services focused on M&A, capital raising, growth, and valuation. More information can be found at www.greenberg-advisors.com.
Founded in 1995 and currently headquartered in Minneapolis, MN, Pinnacle is one of the 50 largest privately owned ARM companies in the U.S. It has proven to be a superior performer in the third party collections space and has a diversified customer base spanning a variety of industries. The company employs approximately 450 people at three call centers in Minneapolis, MN; Monticello, MN; and Decorah, IA. For more information, refer to www.pfgservices.com.
NARS is a leading ARM / BPO firm founded in 1993 by Christopher H. Buehrle and is one of the largest private ARM / BPO companies in the U.S. Headquartered in St. Louis, MO. NARS employs more than 3,000 people at call centers in St. Louis and Cape Girardeau, Missouri; Panama City, Panama and Montego Bay, Jamaica. The company’s on-shore/near-shore business model provides BPO services, first-party, early stage collection services and third-party recovery collections to some of the largest and most recognizable companies in the U.S. For more information, refer to the NARS website at www.narsnet.com.
About H.I.G. Capital
H.I.G. Capital is a leading global private equity investment firm with more than $8.5 billion of equity capital under management. Based in Miami, with offices worldwide, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding in 1993, H.I.G. invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 50 companies with combined revenues in excess of $8 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
About Reprise Management Group
Reprise Management Group was formed in April 2009 through a partnership between H.I.G. Capital and Tim Bauer, a 26-year veteran in the ARM sector. Reprise was formed for the specific purpose of acquiring premier ARM service providers and then growing the businesses through a combination of acquisitions and organic growth.