Latham and CC lead as KKR swoops for £1.7bn credit card business

Latham and Clifford Chance have landed lead roles on private capital giant KKR’s reported £1.7 billion acquisition of NewDay’s consumer credit card portfolio from fellow PE firms Cinven and CVC.

The deal sees KKR’s private credit funds take ownership of the receivables book - separating NewDay’s £5.2 billion credit balance sheet from its origination and servicing arm.

A deal for NewDay had been rumoured for some time. The financial services company has partnerships with several leading UK retailers, including the likes of John Lewis and AO. It provides store cards and co-branded credit cards to its retail partner customers and also operates its own brands.

In November last year, NewDay acquired Sainsbury’s Argos-branded credit card business for £720 million, with Slaughter and May advising the company.

Cinven and CVC had owned the company since 2016 when it had £1.6 billion of receivables. Reports at the time suggest the deal value was around £1 billion.

Advising

Latham & Watkins advised KKR with a cross-practice team led by London M&A partners Melanie Howard and Neil Campbell, and finance partner Patrick Leftley.

Clifford Chance advised sellers Cinven and CVC, fielding a team led by private equity partners Neil Barlow and Shimin Lee alongside securitisation specialists Kevin Ingram and Adam Craig. Global private head Jonny Myers was also involved.