Blackstone leads US1 billion GGW purchase loan package

Blackstone Inc. is leading a package of loans of 950 million euros (US$1,000 million) to support Permira’s purchase of Gossler, Gobert & Wolters, people with knowledge of the matter said.

Permira agreed to buy the German insurance broker from Hg on Friday, said the people, who asked not to be identified because the information is confidential. Other lenders backing the transaction include Goldman Sachs Asset Management and Hayfin Capital Management.

Permira confirmed the agreement to acquire GGW in a statement.

“The funds of Permira are excited to support GGW Group and the management team in their growth journey to become the #1 insurance brokerage for small and medium businesses“Philip Muelder, head of Permira’s services sector, said in the statement.

The representatives of BlackstoneGoldman and Hayfin declined to comment.

The $1.6 trillion private credit market is increasingly winning over banking syndicates that have traditionally financed large acquisitions with leveraged loans. Private credit funds recently granted a record loan of 4.5 billion euros ($4.9 billion) to support the purchase of Adevinta ASA.

The debt from the GGW sale is split into a unit loan of 675 million euros (a combination of senior and junior debt) with a delayed term loan of 275 million euros on top of that for future acquisitions, the people said, which They were not authorized. speak publicly. The price of the unit tranche is 575 basis points above the Euribor, with an original issue discount of 98.

Private equity firms have converged on Europe’s fragmented insurance broker market in search of deals. Flagship transactions include KKR & Co.’s acquisition of French insurance broker April Group, valued at around €2.3 billiona deal financed through a combination of bank financing and direct loans.