Retail Decisions, a portfolio company of European mid-market private equity firm Palamon Capital Partners, has sold off a UK-based subsidiary to Fleetcor, another private equity-backed business. Financial details were not disclosed, but two sources with knowledge of the sale confirmed it as being worth around £50 million (€58 million; $83 million).
Retail Decisions – otherwise known as ReD – is an international business focusing on electronic payment services, such as fraud protection, fuel payment cards and gift cards.
It has sold its UK and Ireland fuel card businesses to FleetCor, a global specialist in fuel card services that has since 2002 been owned by a group of private equity backers. These comprise Bain Capital, Summit Partners, Advent International, Advantage Capital, Nautic Partners, HarbourVest Partners, and Performance Equity Management, according to a FleetCor statement.
Retail Decisions was acquired by Palamon in December 2006 in a €300 million take-private deal. The £50 million in sale proceeds will be used to pay down corporate debt as well as provide additional capital for both acquisitions and organic expansion.