Recoveriescorp

Next Steps with Transaction Capital Limited

Recoveries Corporation Group Limited joins forces with listed South African company, Transaction Capital to build a major international debt recovery and call centre services group.

Leon Sholl and David Mond, the founders of Recoveries Corporation Group Ltd (recoveriescorp) today announced the transfer in ownership of recoveriescorp and Mason Black Lawyers businesses to a new Australian entity, Transaction Capital Australia (TCA).

TCA is owned by South African listed company, Transaction Capital Ltd (TC), a company with a market capitalisation as at 31 October of R7.3B or in excess of A$700m.

Sholl and Mond started recoveriescorp in 1991 with five people. Today the business specialises in debt recovery and insurance claims recovery services, with approximately 600 staff across three cities and clients across federal, state and local government, insurance, banking and finance, telecommunications and utilities sectors.

Recoveriescorp CEO & Managing Director, David Mond said following a comprehensive due diligence process, the Board unanimously recommended to shareholders to approve the transfer of ownership to the new combined enterprise.

“This is a very important step in recoveriescorp’s evolution and will provide the capital and resources to facilitate our strategic growth targets over the next three years and beyond.

“The result is a best practice collaborative partnership between two of the highest performing debt recovery companies; recoveriescorp in Australia and TC in South Africa.

"The combined Group will span Australia, Fiji and South Africa and provide internationally competitive debt recovery, call centre and financial solutions and services.

“The change has the full support of the current serving Executive Management Group and Leadership Team. They will continue to deliver best practice solutions to recoveriescorp and Mason Black Lawyers’ valued clients with a focus on achieving the Group’s strategic business plan towards 2020,” said Mond.

Recoveriescorp will continue being led by current Group CEO & MD, David Mond and COO, Nicholas Harrak. Leon Sholl will continue in his role as Group Solicitor Director.

David Hurwitz, Group Chief Executive of Transaction Capital said that they were excited about the potential growth prospects for both parties. “Recoveries Corporation has a scalable business model and proven track record whose competitiveness and value can be enhanced by Transaction Capital through active management, sharing of skills and enhancing technology,” he said.

Mr Mond highlighted that the Group will include a technology hub to further develop recoveriescorp proprietary software and continue to provide advanced innovative solutions for clients in the 21st century.

“Our growth succession plan and business culture will also ensure that we will retain recoveriescorp’s core values of integrity, collaboration, accountability, respect and excellence for our stakeholders, including our valued people and clients.

“The culture of our two organisations are strongly aligned and this positions us well for continued growth into the future,” he said.


BOARD AND EXECUTIVE MANAGEMENT


Joan Fitzpatrick, current Non-Executive Director of Recoveries Corporation from 1 January 2017 will assume the role of Chair of the Board of recoveriescorp following the retirement of Non-Executive Director, John Wauchope, OAM as Chairman. John will continue on the Board as Chair of the Audit & Risk Committee.

David Hurwitz, Group CEO of TC and Ian David McAlpin, CEO of TC Credit and Debt Recovery Services, will both join the Recoveries Corporation Group Limited Board, expanding Board membership from four to six. Joan and John will also be joining the TCA Board.