John sells Pioneer

PERTH debt collection specialist Keith John has sold his Pioneer Credit Management Services business into a listed national enterprise for the second time in the past five years. Sydney-based Credit Corp Group Ltd has bought Pioneer from Mr John and his business partner Mark Street for an undisclosed value, with an 80:20 split between cash and shares. In confirming the sale to WA Business News, Mr John said the deal was very different to the sale of a previous version of Pioneer to fledgling national operator RMG Ltd, which traded as Receivables Management Group. Pioneer was restarted by Mr John and Mr Street after RMG ran into management turmoil and financial difficulties. Mr John said the deal with RMG was part of a wave of consolidation across the industry, with Pioneer one of 23 acquisitions by the listed parent. He said Credit Corp was the strongest player in Australia and the purchase would be complementary for both businesses, which have had operational links for some time. “We have worked with these guys for the past three years and they have become one of our most significant clients,” Mr John said. During the past year that relationship had extended to Credit Corp staff being located in Pioneer’s East Perth offices. The Pioneer brand would grow as the national mercantile brand for Credit Corp, he said. Shares in Credit Corp, which has a market capitalisation of around $300 million, were up more than 2 per cent after the announcement.