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Private Equity News & Analysis

Permira makes early pay-out

Permira is to make a £240m repayment to investors although it says it is as yet undecided on an exit strategy for Homebase.

By
PEI Staff
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Private equity firm Permira has today announced that it is to make an ahead-of-schedule £240m repayment to investors in Homebase, the UK DIY chain.

The early repayment comes as a product of better-than-expected results for Homebase since Permira acquired the company from J Sainsbury for £750m in March 2001.

Permira, formerly known as Schroder Ventures, is to return £14m to Schroder Ventures International Investment Trust (SVIIT), which invested £20m in the original acquisition of Homebase. SVIIT wrote up the valuation of its investment in Homebase to £30.5m in late 2001 to incorporate the firm’s improved performance.

The repayment has increased the possibility of an IPO for Homebase later this year, although speaking to Reuters, a Permira spokesperson said: 'We're still considering our options. We always have one mind on an exit strategy, but there's nothing decided as yet.'

Permira owns 70 per cent of the business, with J Sainsbury and management controlling 18 per cent and two per cent respectively.