Private equity firm snaps up Leeds data giant

GLOBAL private equity firm Perima, the former owners of fashion brand New Look, have announced the acquisition of Leeds-based Lowell Group.

With the backing of Permira funds, the private equity firm has acquired the business from TDR Capital for an undisclosed sum.

It has been suggested that the deal could have been worth £1.1bn. 

Lowell Group is a Leeds-based business that provides credit management services, including credit management and data analytics.

It will be merged with an existing company in the firm’s portfolio, a German business GFKL.

Ontario Teachers’ Pension Plan along with the management of the Lowell Group will remain shareholders.

The combined group will have 15m customers, with the Lowell Group alone bringing 1,200 employees into the newly merged business.

The senior management teams will remain in place and James Cornell, CEO of Lowell Group, and Kamyar Niroumand, CEO of GFKL, will co-run the company and are excited about the numerous opportunities today’s merger represents. The Permira funds’ investment is a significant endorsement of both GFKL’s and Lowell Group’s track record, current strength and future growth prospects.

James Cornell, chief executive of Lowell Group, said: “Over the last four years under TDR ownership, Lowell has grown significantly to become one of the largest and most established debt purchasers in the UK, employing over 1,200 people.

“With this transaction, Lowell is embarking on its next phase of growth, both in the UK and to create a leading pan-European credit management business.”

Kamyar Niroumand, chief executive of of GFKL, added: “GFKL will benefit from Lowell’s best in class debt recovery and data analytics capabilities, while Lowell will profit from our successful track-record in business process outsourcing. This is a perfect strategic fit driven by tremendous revenue and growth potential.”

Philip Muelder, UK head of Permira and chairman of GFKL, commented: “We are incredibly excited to be bringing together two best-in-class financial services businesses, thereby delivering on the consolidation strategy outlined at the funds’ acquisition of GFKL.”

Deloitte provided tax advice for the deal.