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Pamplona’s PPF deal backed by 220 mln euros of debt financing-Reuters

(Reuters) – Private equity firm Pamplona Capital Management‘s acquisition of Partner in Pet Food (PPF) will be financed by about 220 million euros ($238 million) of leveraged loans, banking sources said on Thursday.

Pamplona agreed to buy the Budapest-based business, Europe’s second-biggest provider of private-label pet food, from Advent International for 315 million euros on April 2.

Citi and UniCredit are leading the acquisition’s debt financing, which has been fully underwritten. The total debt comprises about 172 million euros of term loans and approximately 45 million euros of capital expenditure and revolving credit facilities, the sources said.

Leverage on the deal is expected to total 4.9 times debt to earnings.

The financing is likely to launch for syndication to lenders in mid-April, the sources said.

The deal is expected to be welcomed by cash-rich lenders eager to put money to work.

Advent bought PPF from Permira in 2011 for 188 million euros. The company reported 2014 sales of 235 million euros.