H.I.G. Capital News
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H.I.G. Capital Portfolio Company NARS Acquires Pinnacle Financial Group
National Asset Recovery Services Acquires Leading Domestic Third-party Collections Agency
MIAMI - 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.
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.”
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.
Reprise CEO Tim Bauer commented, “This more than doubles NARS’ domestic footprint in highly strategic areas, and cements the combined NARS and Pinnacle as an industry leader in first-party, third-party, and BPO work. We look to continue to invest in quality businesses in the ARM sector and grow our platform.”
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, please 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, please 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, and with offices in Atlanta, Boston, New York, and San Francisco in the U.S., as well as affiliate offices in London, Hamburg and Paris in Europe, 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.