Encore Capital Group Inc. said it expects to incur various charges in connection with the sale of its subsidiary, Encore Australia Holdings I PTY LTD, and other associated entities, collectively known as Baycorp, to Credit Corp Group Ltd.

The debt collection company expects to record a noncash goodwill impairment charge of about $10.8 million, as the fair value of the assets was below the current recorded book value. It will also incur a loss on sale of approximately $12.6 million and roughly $1.5 million in costs, such as legal fees and consulting fees.

Encore Capital expects the total amount of charges to be about $19.7 million on an after-tax basis.

Credit Corp Group said the acquisition will boost its fiscal-year 2020 profit, increasing its forecast to a range of A$81 million to A$83 million from A$75 million to A$77 million.