SAN DIEGO and WEST MALLING, England, May 30, 2013 /PRNewswire/ -- Encore Capital Group, Inc., a leading U.S. debt management and recovery company (NASDAQ: ECPG), today announced an agreement to purchase 50.1 percent of the equity interest in Cabot Credit Management (CCM), held by funds advised by J.C. Flowers & Co. LLC (" J.C. Flowers & Co."), for £128 million (approximately $192 million). Encore has the option to purchase the remaining company interest during the period from the fourth anniversary to the sixth anniversary of closing. The transaction is expected to close in the third quarter. The partnership between Encore and the United Kingdom and Ireland-based CCM is based on a strategy of growth that brings together two market leaders to create a global leader. Once completed, the acquisition will provide CCM access to more capital, enabling the company to purchase additional debt and expand into other asset categories. It will also give CCM greater access to resources and expertise, enabling the company to drive higher levels of operational performance. CCM has purchased over 3.5 million individual consumer accounts, with a face value of over £7.7 billion. Its Estimated Remaining Collections (ERC) as of March 31, 2013 was £934 million. Its 2012 revenues were £161 million, and its revenue growth from 2010-2012 was 11 percent per annum. "The combination of Encore and Cabot Credit Management creates a global leader in the consumer debt purchase and recoveries industry", said Encore's President and incoming CEO Ken Vecchione. "Encore has been looking for a strong partner in the U.K. for several years – one that is a leader, has a strong management team and has the ability to leverage our analytic capabilities and efficient operating platform. We've found all of this in Cabot Credit Management." CCM, a market leader in the U.K. and Ireland, represents an attractive opportunity for Encore to deploy capital globally in a market with strong growth potential. The U.K. is the largest mature debt purchase market in the world after the United States. Additionally, CCM has a 14-year track record of delivering steady growth. "Cabot Credit Management has strong relationships with financial institutions and is well positioned to bid on the significant backlog of non-performing consumer debt that is likely to come to market in the U.K. over the coming years," Vecchione went on to state. "Furthermore, the company's in-house collections operations give it an effective and scalable tool for growth within its market."