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Harry Potter publisher buys Tottel from Matrix for GBP10m

Matrix Private Equity Partners, the small buyout specialist, has sold Tottel to Bloomsbury Publishing, the publishers of the Harry Potter novels, for GBP10m.

Matrix Private Equity Partners, the small buyout specialist, has sold Tottel to Bloomsbury Publishing, the publishers of the Harry Potter novels, for GBP10m.

The GBP3m proceeds for MPEP VCT shareholders represent a return of four times its original investment of GBP750,000 for its Income & Growth and Matrix Income and Growth 4 venture capital trusts. This is the seventh successful cash exit for MPEP in the last two years.

MPEP originally acquired Tottel with its management in October 2004, from LexisNexis, a subsidiary of Reed Elsevier. The business, based in Haywards Heath, Sussex, employs 27 staff. Annual turnover of GBP6.2m has grown around 80 per cent since investment.

Mike Walker, a partner at MPEP who was on the board of Tottel, says: ‘Tottel is a simple honest growth story. Buy a good business with a real niche at a sensible entry price, back quality managers who grow revenues and profits and sell at a sensible exit price. This is the MPEP strategy that works whatever the point in the cycle.

‘Our fourfold return has been achieved despite a weak divestment market, but reflects the fact that Tottel is a high quality asset. Bloomsbury will now take the company to the next stage in its development. We wish them and the Tottel team every success’

Jim Smith, managing director of Tottel, says. ‘Tottel has performed well with annual revenue growth targets consistently achieved. Matrix has been a supportive financial partner to the business and has played a role in its growth. With a firmly established brand we are now in a strong position to develop further under Bloomsbury’s ownership.’

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