CVC Capital Partners Ltd., one of Europe’s largest private-equity firms, agreed to acquire a majority stake in British online payment company Skrill Group Plc in its third deal in seven days.
The buyout values Skrill at 600 million euros ($800 million), Bahrain-based Investcorp Bank BSC said today in a statement. London-based Skrill generated more than 200 million euros in sales and 50 million euros of earnings before interest, tax, depreciation and amortization in 2012, Investcorp said.
Credit Suisse Group AG, Jefferies Group LLC and Royal Bank of Scotland Group Plc provided senior debt financing for the buyout of Skrill, CVC said in a statement.
CVC plans to fund the deal with 305 million euros of loans, including 275 million euros of debt that will be drawn for the acquisition, according to a person with knowledge of the matter, who asked not to be identified because the financing is private.
Ed Moore, a London-based spokesman for CVC employed by Brunswick Group, declined to comment on the debt financing.
Investcorp, an investment firm with about $10.5 billion in assets, said it will retain a “substantial minority position” in the company and continue to hold a seat on board. Investcorp bought Skrill for 105 million euros in 2007 and expanded the business with the purchase of paysafecard.com Wertkarten AG, an Austrian provider of prepaid vouchers that enable consumers to shop online, for about 140 million euros in 2012.
CVC also entered into exclusive talks to buy some of the European business of Campbell Soup Co. and agreed to acquire Domestic & General Group Ltd., a U.K. home-appliance warranty provider, from Advent International Corp. The firm is paying 750 million pounds ($1.2 billion) for Domestic & General, two people with knowledge of the transaction said Aug. 13, asking not to be identified because the information is private.
Private-equity firms typically pool money from pension plans and endowments with a mandate to buy companies within five to six years, then sell them and return the money and a profit after 10 years. The firms usually charge a management fee of as much as 2 percent and keep 20 percent of the profits from investments.