Private equity firms CVC and PAI Partners have agreed to jointly buy the remaining shares they did not already own in Spanish retailer Cortefiel, the company said in a statement on Friday, adding that the deal would help it reduce its debt.

CVC, PAI and Permira had jointly owned 33 each of Cortefiel. After the acquisition, Permira will exit the company and the two other private equity firms will each have 50 percent stakes, a source with knowledge of the transaction said.

Cortefiel’s debt, which stood at 895 million euros ($1.04 billion), will be cut by 40 percent under the terms of the deal, the source added. The firm had large chunks of bank debt maturing in 2018.

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