Cinven and CVC acquire NewDay in £1bn deal

The deal values the business in the region of £1bn, unquote" understands.

The move brings an end to the company's reported IPO plans, which were said to have been put on hold following the UK's vote to leave the European Union.

Under its new ownership model, the company will look to expand by launching new credit products. Cinven partner Caspar Berendsen also said in a statement the business had been following an acquisitive growth strategy, which it intended to support.

It is understood the firms are working on a £500m debt facility to support the deal, with Credit Suisse believed to be acting as lead arranger. It is not yet known how the facility will be structured.

Both GPs have previously invested in financial services companies in the UK and Ireland. They notably joined forces with Oak Hill Capital Partners in 2010 to support the foundation of Irish aircraft leasing and financing company Avolon. Each GP contributed $250m to the $1.4bn Avolon deal, with the company being sold to corporate buyer Bohai Leasing in September 2015 in a $7.6bn transaction.

Cinven returned €2bn to investors in 2015 from its investments in the financial services sector. The deal marks the second investment for Cinven's sixth fund, which held a final close on €7bn in June 2016.

Company
Headquartered in London and founded in 2000, NewDay is a credit card business. It has a headcount of 800 with an additional office in Leeds. The company provides Aqua- and Marbles-branded cards to customers with no or low credit history as well as retailer-branded credit cards alongside companies such as House of Fraser and Debenhams.

People
Cinven – Caspar Berendsen (partner).
CVC Capital Partners – Peter Rutland (partner).
NewDay – James Corcoran (chief executive).

Advisers
Equity – Goldman Sachs (M&A); Clifford Chance (legal); PwC (commercial due diligence); EY (financial due diligence); Deloitte (tax); Alvarez & Marsal (financial due diligence); Duff & Phelps (regulatory due diligence).

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• Topics
• Buyouts
• UK / Ireland
• Financials
• CVC Capital Partners
• Cinven
• United Kingdom