Permira closes Clyde Blowers-backed deal

Permira Credit Solutions II acts as sole lender to engineering company backed by sponsor Clyde Blowers Capital.

A four-year term loan has been extended from Permira Credit Solutions II (PCS2) to David Brown Gear Systems, a market source said. The engineering company is sponsored by industrial company investor Clyde Blowers Capital based in East Kilbride, Scotland.

London-based Permira Debt Managers is sole lender to the 150-year old company through its second direct lending fund. Proceeds from the £48 million (€67.6 million; $74.8 million) senior secured loan will go towards refinancing existing debt and supporting continued growth across a global network of manufacturing and service facilities, the firm announced in a statement.

David Brown has five manufacturing facilities across four continents and a growing global network of service centres and sales offices.

“David Brown encapsulates a proud tradition of British engineering excellence,” Thomas Kyriakoudis, chief investment officer of Permira Debt Management, said. “We are delighted to be able to back their next phase of growth with PCS2 providing substantial growth capital to the company.”

More than €200 million of capital has been deployed from Permira’s second direct lending fund, PDI understands. The fund closed on its seventh investment last month, extending a £33 million loan to consultancy firm RSK Group.

Permira is expected to hold a final close on PSC2 around its target of €800 million this month, as previously reported.