Introduction to the Bid
The private equity company at the center of a number of bids for British companies is leading the race to buy the owner of Argos’ Store Card Operations for 1.7 billion GBP. KKR is the front-runner to acquire the Newday Group, which is currently owned by Cinven and CVC Capital Partners.
The Bidding Process
KKR is not in exclusive talks, and other parties, including PIMCO and a Bain Capital consortium, are still in the running. Some bidders, like PIMCO, are interested in buying Newday’s consumer loan book, while others, including KKR, are looking to acquire the entire company. KKR may consider keeping existing shareholders invested for a certain period.
About Newday
Newday, which acquired the Argos business card business from J Sainsbury last year for 720 million GBP, has been exploring a sale or stock market listing for months. The company has around four million customers and is one of the largest private providers of consumer credit services in the UK.
Financial Performance
Last year, Newday reported an underlying profit before taxes of 213 million GBP, with new customer acquisitions increasing by 36%. The company has also started a technology and loan partnership with Lloyds Banking Group and launched a pilot technology partnership with Debenhams Group.
KKR’s Involvement
KKR has been involved in several bidding wars in recent months, including those for Assura, the landlord of GP operations, and Spectris, a provider of test equipment, both of which are listed on the London stock market. Newday, KKR, and CVC declined to comment on the situation.
