ISIS Equity Partners has sold RLA Group (RLA) to The Mission Marketing Group plc (TMMG).
ISIS Equity Partners has sold RLA Group (RLA) to The Mission Marketing Group plc (TMMG). The GBP 20m deal is structured with an initial consideration of GBP 9.5m, and a further GBP 11.5m payable depending on specific performance criteria being met. The sale to TMMG will yield a multiple of 3.7x to ISIS clients.
ISIS invested GBP 2.35m through its Baronsmead VCT funds in the GBP 3.6m replacement capital deal with RLA in December 2002. RLA is a full service marketing and communications group with 60 staff and offices in
Bournemouth, Belfast and Edinburgh. Clients include Direct Wines, Goodyear Dunlop, Kingfisher plc, Teleflorist and Volkswagen Group.
Gareth Young at ISIS says, ‘RLA and ISIS have enjoyed a successful long term partnership which can be measured beyond financial performance and investor returns. RLA has carved an interesting and meaningful niche activating national brands at the point of sale. I have no doubt that RLA has an exciting future ahead and will play a big part in the Mission story too.’
Simon Dodd, RLA CEO, says, ‘Our partnership with ISIS has been invaluable in growing RLA to where we are today by helping us enhance our skills in automotive, retail and media. They have also been very supportive of our desire to become part of TMMG.’
Current investments by ISIS in Business Services include LBM, Occam, Reach, Reed & Mackay, and Green Issues.
Buckingham Corporate Finance advised shareholders on the sale. Ian Leaman says, ‘I also advised Roland Long, the founder of RLA on the sale to ISIS in 2002. Since then, the business has more than doubled its profitability, expanded geographically and developed its range of marketing services.
‘Early discussions with TMMG established the excellent potential fit between the two businesses. The transaction structure which evolved enables ISIS to crystallise a significant gain and management to become involved in a fast growing and diverse national marketing services business.’
Legal advice was provided by Burges Salmon and Pinsent Masons.
