Scandinavian giant snaps up Scots debt recovery group

A GLASGOW credit management firm has been snapped up by a Scandinavian rival in a deal that will create one of the UK's biggest debt recovery firms.

BCW was bought by Oslo-based Gothia - which is backed by Norwegian Herkules Capital - for an undisclosed sum.

BCW was founded in 1983 by Paul Fraser, a former shoe salesman, who grew through a series of acquisitions. He sold the outsourcing division for 28 million in 2006 to a management buy-out backed by venture funding group Sovereign Capital.

The Scottish management team will remain with Gothia, with Bryan Mouat, managing director of BCW, becoming manager of the newly-enlarged UK and Ireland businesses.

BCW's revenue grew to 16.5m in the year to 28 February, compared with 14.7m in the previous 12 months. Pre-tax profits fell from 2.5m to 2.3m after the firm opened offices in Manchester and Stratford-upon-Avon. Gothia expects BCW to grow turnover to about 22m.

The Scots firm has about 400 staff in its five UK and Ireland offices, while its Norwegian parent had some 420 employees in seven northern European countries, including about 100 in the UK, before the acquisition.

Gothia chief executive Trond Kristian Adreassen said: "This acquisition has further strengthened our ambitions of becoming a larger European player within the areas of credit management and financing,"

BCW's public-sector work includes council tax recovery work for local authorities including South Lanarkshire.