International private equity firm Permira has agreed to acquire Leeds-based credit management services firm Lowell Group.
Permira, a former owner of New Look, has bought debt collector Lowell Group from majority shareholder TDR Capital for an undisclosed sum.
But reports in the Sunday Times last weekend suggested that the deal would be worth £1.1bn.
Permira will merge Lowell Group with existing portfolio company GFKL, a provider of receivables management services in Germany, to create a pan-European credit management business.
Ontario Teachers’ Pension Plan and the management of Lowell Group will remain shareholders.
The transaction, which is expected to close in the fourth quarter of 2015, is subject to certain regulatory approvals and customary closing conditions.
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.
Mr Cornell said: “We are delighted to have attracted backing from such a renowned global investor as the Permira funds. Furthermore, retaining investment from Teachers’ is a huge testament to our success to date and a strong endorsement to the potential of our future group.
He added: “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.”