Allied Global Holdings Becomes First Canadian-based Firm To Acquire US Collection Agency

Bethesda, MD — Kaulkin Ginsberg Company (Kaulkin) today announced the sale of Recovery Bureau of America (RBA), based in Valencia, California, to Toronto-based Allied Global Holdings Inc. (Allied). Terms of the sale were not disclosed.

RBA, founded in 1992, provides debt collection services to the largest banks in the US and employs about 250 people from its two offices. In 2000, the company was awarded one of the most prestigious government collection contracts, from the US Department of Education (DOE), to collect its delinquent student loan debt. RBA services the DOE from its Atlanta office and is already among the leading agencies servicing this government contract. RBA?s shareholders will stay on in a consulting capacity.

According to Allied?s President, David Rae, “We are very excited about the acquisition of RBA as it will allow us to significantly accelerate our growth plans for the U.S. market. RBA’s management team has done a great job growing the company to its current level and we look forward to working with them in continuing to expand the business.”

“As RBA?s clients continue to grow into new geographic regions, they will clearly recognize the benefit of Allied?s global experience,” observes Brian Greenberg, who facilitated the deal for Kaulkin. “This is a very good fit for RBA?s shareholders, client and employees, as well as for Allied which expands into the US servicing the federal government and some of the most visible names in the banking community.”

Since the North American Free Trade Agreement (NAFTA) went into effect in 1994, a number of sizeable deals have been completed in which American companies acquired Canadian agencies. Significant deals include the 1994 sale of Canadian Bond and Credit (CBC) to Equifax, the 1998 sale of FCA International to NCO Group, and the 2000 sale of Equifax?s Canadian collection operations to Intellirisk Management Corporation. The RBA transaction, however, is the first notable deal of a Canadian-based agency acquiring a US agency, possibly beginning a trend as Canadian players seek to gain a piece of the growing US collection market.

About Allied Global Holdings
Allied Global Holdings Inc., an international debt collection and accounts receivable management company, now employs a work force of more than 700. The company operates from three production centers in Canada, two in the United Kingdom and three in the USA. In April 2001, Clairvest Group (CVG.TO), a publicly held Canadian investment group became an equity partner by investing in Allied.

About Kaulkin Ginsberg Company
Kaulkin, who initiated this transaction and advised RBA on this deal, is the leading advisor to the debt collection industry and since 1992 has advised on more than 75 agency transactions with deal values well over $1 billion. Kaulkin provides sophisticated M&A advisory services to the specialized outsourced business services sector. The company manages acquisitions and divestitures, locates strategic or financial partners, provides debt and equity funding sources, conducts market research, and provides consulting services. Kaulkin is deeply experienced in advising owners of mid market firms and buyers of any size up to and including Fortune 500 companies. Clients include cash flow oriented enterprises offering professional, third party services to the public or private sector. For information on Kaulkin visit www.Kaulkin.com, and for information on the debt collection industry, visit www.CollectionIndustry.com.