A UK private equity firm is paying a below-average debt multiple for a domestic appliances business in the first example of a mid-market buyout reducing leverage in response to problems in the debt markets.

Alba, an electronics company, abandoned its sale of Pulse Home Products division last year but was approached by Rutland in May and began exclusive negotiations. Rutland bought Pulse, which includes domestic appliances brands such as Breville, Nicky Clarke and Power Devil, for £51.5m (€75.7m).