PCS2 acts as sole lender in CLEAN Linen’s acquisition of Paragon Laundry14 January 2016
Permira Debt Managers (“PDM”), the debt management and advisory arm of Permira and one of Europe’s leading specialist debt investors, today announces that direct lending fund Permira Credit Solutions II is acting as sole lender in the financing of the acquisition of Stevens Hatherley Holdings Limited trading as Paragon Laundry by CLEAN Linen to create one of UK’s largest independent linen and garment rental providers. MML backed CLEAN Linen almost doubles in size due to the acquisition.
The acquisition of Paragon is supported by long-term debt provided and arranged by Permira Credit Solutions II, together with an acquisition/capex facility available to support future growth.
Jason Miller, CLEAN CEO, said: “This is a very exciting and strategic acquisition for CLEAN. I have known Paragon and worked closely with the business over many years and the integration of the Paragon business into CLEAN is a logical development. The geographical synergies are excellent and this acquisition will significantly extend our UK coverage.
Thomas Kyriakoudis, CIO of Permira Debt Managers, added: “We are delighted to back CLEAN Linen, a long-established and successful family business that really stands-out in its sector. We see a great opportunity for the business to flourish in a competitive but attractive UK hospitality sector. The capital that our funds provide will be used to facilitate the acquisition of Paragon and bring to fruition exciting capex projects that should drive growth over the next few years. This transaction is a good example of our strategy of backing high-quality, growing private businesses in Europe with flexible and patient capital.”