Private equity circles D&G

Alice Murray
21 June 2013

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Private equity firms including Blackstone, CVC and Clayton Dubilier & Rice are believed to be in a second round of bidding for Advent International's Domestic & General (D&G).

According to reports, lenders are putting together debt packages of around £500m to support a potential secondary buyout.

Advent hired Goldman Sachs earlier in the year to oversee the sales process. It is understood that D&G could be sold for around £1bn.

Rumours of Advent's intention to sell the London-based insurance business began circulating at the end of last year. The buyout house took D&G private in late 2007 in a deal worth £523.9m. At the time, D&G generated operating profits of £19m on revenues of £304.6m. The company's current turnover is said to stand at £570m, yielding an EBITDA of £72.7m.

Advent loaded the business with debt worth 10x EBITDA following the buyout, reports claimed. However, the firm managed to pay down the debt while expanding the business globally. Today, around a third of the company's revenues are said to be coming from international sales.

D&G provides extended warranty plans for domestic electrical goods. The business reportedly employs more than 2,500 people in the UK and has 13 million customers worldwide.