Permira acquires Lowell to merge with GFKL

Following the transaction, which is thought to be worth around £1.1bn, Permira will merge Lowell, a UK provider of credit management services, with GFKL, the German financial services firm acquired by the GP in May from previous backers Advent International in a €600m secondary buyout.

The resulting company will be a pan-European credit management business with 15 million customers. 

As part of the transaction, existing Lowell investors, the group's management and Ontario Teachers' Pension Plan will remain as shareholders.

Previous funding
Lowell received private-equity backing in May 2008 when it was acquired by Exponent Private Equity from Cabot Square Capital. At the time, the deal was reported to be worth in the range of £150-200m.

In June 2011, TDR acquired Lowell from Exponent.

Company
Leeds-headquartered Lowell is a UK debt purchaser. It operates through two divisions; Lowell Financial and Fredrickson. The financial division, based in Leeds, focuses on investing in defaulting consumer debt portfolios and their recovery. Fredrickson, based in Surrey, is a debt collection agency. The company employs 1,200 people.

Lowell was founded in 2004 with support from Cabot Square.

Germany-based GFKL employs 950 people and manages a receivables portfolio of €16.6bn for clients including banks, insurance companies, online retailers and telecommunications companies.

People
James Cornell is CEO of Lowell, while Kamyar Niroumand is CEO of GFKL. The pair will co-run the newly combined company. Philip Muelder is UK head of Permira and chairperson of GFKL.

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• Topics
• UK / Ireland
• Expansion
• Financials
• Permira
• TDR Capital