Private Credit Firm Permira Eyes Takeover of German Tour Company
TL;DR
Permira Credit is in advanced talks to acquire German tour operator Berge & Meer, reflecting a trend where private credit firms take equity positions to support debtors. The move aims to provide growth capital, with Permira already holding equity alongside Genui.
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Private credit lender Permira Credit is in advanced talks to take over German tour operator Berge & Meer, according to the company, another sign of the growing trend of direct lenders moving to take equity positions to support their debtors.
The main objective of the transaction is to “provide additional growth capital” to the company, chief executive officer Marcel Mayer wrote in emailed comments. Permira is already participating in the equity of the company, Mayer said, alongside principal shareholder Hamburg-based private equity firm Genui GmbH.
Genui’s takeover of Berge & Meer in 2019 was financed by a €52 million ($60 million) loan in 2019, according to corporate filings. At the time, Permira said it was the sole senior secured lender in the acquisition.
Private credit firms across Europe have been grappling with how to support their portfolio companies, as they face the first wave of refinancings since direct lending started to take off. In Europe, sole lenders are common, in theory allowing for quicker and more tailored negotiations than in broadly syndicated markets, where borrowers face a wider range of creditors.
Read More: Private Credit Enters the Equity Business as Borrowers Struggle
Permira Credit Solutions notified the German merger control of the potential takeover of all of the shares in Berge & Meer Touristik GmbH in a filing on Nov. 21.
Spokespeople for Permira Credit and Genui declined to comment on the potential takeover.
Like many companies in the travel sector, Berge & Meer was hit by pandemic-era lockdowns. To deal with the fallout, the firm took out loans from the German state-owned development bank KfW and the German Economic Stabilization Fund.
The acquisition financier also granted a €14.1 million loan to cover accrued interest on the initial loan, according to latest publicly available results dated July 2024, which carried an interest rate of 20%.
The company has since recovered from the pandemic and is “solidly profitable,” according to Mayer.