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Leeds-headquartered CPP Group, a product and services company specialising in the financial services and insurance markets, has completed the sale of part of its business for £2.3m.
It has sold CPP Creating Profitable Partnerships GmbH (CPP Germany), its German card protection legacy business, to Deutsche Schutzbriefgesellschaft GmbH (Mehrwerk), a specialist in German-speaking banking, retail, leisure and other sectors.
After adjustment for working capital, CPP Group will receive cash proceeds of approximately £2.2m before transaction costs.
CPP Germany is a non-core book of card protection business that was placed in runoff, which included closure of the company’s operation in Hamburg, following a strategic decision to restructure the Group’s EU markets in 2018.
It accounted for £1.1m of the £8.1m contribution to Group EBITDA from the Group’s Ongoing Operations in 2020.
CPP Group explained: “The disposal is in line with our commitment to maximising value from its assets and focusing on the areas of the business that have the strongest prospects for delivering sustainable and profitable medium to long-term growth.
“In line with our capital allocation priorities, the proceeds will be used to strengthen the Group’s working capital base, provide additional financial flexibility to deliver its growth strategy, and ultimately enhance returns for shareholders.
“CPP will retain a presence in the German market managed through its UK operation, continuing to offer innovative, digital-led products to meet demand from its business partners in the market. This includes the potential for further distribution arrangements via Mehrwerk.”
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