Permira acqusition and merger of GFKL Financial Services and Lowell Group

Overview:

• Private equity fund Permira acquired GFKL Financial Services and merged the business with Lowell Group. 
• Lowell and GFKL Financial Services both provide receivables management services, with the former focused on the UK and the latter working across Europe. 
• Permira acquired GFKL for around €600 million from Advent in May 2015 and then bought a majority stake in Lowell from TDR Capital in October 2015 through GFKL and merged the businesses. 
• The combined businesses created the largest credit management company in Europe. 
• Lowell shareholder, Canadian pension fund Ontario Teachers' Pension Plan and the management of Lowell have both retained stakes in the merged company, Lowell GFKL Group. 
• Permira's leveraged buyout of GFKL and Lowell were financed through a bridge loan and high-yield bonds.
• Permira issued a €365 million bond to to finance the purchase of GFKL and two bonds - £565 million 8.5% senior secured notes due 2022 and £230 million 11% senior notes due 2023 - for GFKL's acquisition of Lowell. 

Ben Naylor - Regional Editor