DEBT collection company Repcol has formed a debt purchasing venture in partnership with international investment fund Cargill Value Investment. The new venture, Trans-pacific Debt Purchase, will initially focus on purchasing ‘distressed’ consumer debts in the Australian market. Cargill will provide the debt funding, Repcol will provide the collection services and the two partners will share equally in the equity contributions and future earnings. In its first debt acquisition transaction, Transpacific has entered into a three-year contract to acquire consumer debts from GE Money. It is anticipated that Transpacific will spend $60 million a year on this contract. Repcol recently reported a 35 per cent increase in annual revenue to $36.9 million and a 95 per cent increase in net profit to $6.1 million. The big profit increase reflected the benefits of its low-cost collection centre in Bangalore, India, which has allowed Repcol to reduce staffing in its Perth collection centre.
© Business News 2017. You may share content using the tools provided but do not copy and redistribute.