(LPC) - Direct lending fund Ares Management has committed £595 million in financing to back private equity firm BC Partners’ acquisition of UK-based VetPartners, according to a source familiar with the situation.
The financing is split between a £320 million super senior and unitranche facilities, £100 million in PIK notes and a £175 million committed acquisition facility, according to the source.
BC Partners acquired VetPartners for £700 million from August Equity, which has held a majority stake in the company since 2015.
The company’s Ebitda is £50 million and in the last few years has expanded outside of its North of England base to operate nationally. The company manages more than 300 locations and recently acquired farm production animal vet Origin Group.
Ares first invested in the company in 2015 and earlier this year Ares acquired a 40 percent after it invested £500 million in a mixture of unitranche and preference shares to support the recapitalisation of the business.
Ares and VetPartners declined to comment.
Editing by Christopher Mangham