Bain Capital is set to acquire German facility-management firm Apleona Group, with Citigroup and UBS arranging approximately €2bn ($2.1bn) in debt financing to support the deal. 

This marks one of the few significant acquisitions in Europe’s leveraged finance market amid a scarcity of M&A activity in recent years.

The two banks are leading the leveraged loan financing, which will be syndicated to institutional investors next month. Additional banks may also participate, according to sources familiar with the matter. Neither Bain, Apleona, Citi, nor UBS have commented on the transaction.

The Apleona deal stands out as one of the rare large-scale financing opportunities in Europe’s private equity landscape. Credit investors, eager to deploy capital amid a strong demand for leveraged loans, are expected to show substantial interest. Apleona, already a known issuer with more than €1bn in existing debt, is likely to attract robust demand from investors looking for new opportunities.

Beyond the Apleona transaction, other private equity-backed financings currently in the market include a €775m loan for the buyout of Dutch pharmaceutical firm Synthon International Holding BV and around €700m in debt for H.I.G. Capital’s acquisition of Kantar Media. Investors are also anticipating an €8.65bn loan-and-bond package for Clayton Dubilier & Rice’s buyout of a portion of Sanofi SA’s consumer arm, Opella, though this transaction is unlikely to close before the end of March.

Bain’s acquisition of Apleona from PAI Partners was first announced on February 14, following a pause in sale efforts last year when bids fell short of PAI’s expectations. Apleona, which employs more than 40,000 people and generates €4bn in annual sales, will now be part of Bain’s portfolio as buyout firms resume divestment plans amid a more favorable dealmaking environment.