An Apollo Global Management managed European fund will acquire €650 million ($860 million) of Irish consumer credit card receivables from Bank of America.
Apollo European Principal Finance Fund I or Apollo EPF announced today a definitive agreement to acquire the Irish consumer credit card portfolio of Bank of America Europe Card Services, which includes above 200,000 customer accounts.
The company noted that the accounts will continue to be managed by a roughly 250-member team based in Carrick-on-Shannon, Ireland, which is also being acquired by Apollo EPF. The terms of the deal were not disclosed.
Upon completion of the Irish investment, Apollo EPF will have acquired over €1.3 billion of credit card receivables and own consumer loan servicing platforms in Ireland and Spain with a combined staff of about 550 employees.
“This transaction underscores Apollo’s ability to leverage its integrated platform in pursuit of the attractive investment opportunities arising out of the restructuring of the European financial services landscape," said David Abrams, managing partner of Apollo EPF in a press statement. "We are committed to enhancing and building our European credit businesses, including the acquisition of large portfolios of consumer receivables and performing and non-performing residential and commercial mortgages."
The acquisition of the Irish consumer credit card unit follows an announcement by Apollo EPF to purchase BofA's Spanish consumer credit card portfolio and operations in August 2011.