Mid-market private equity house Lloyds TSB Development Capital has completed the GBP72m merger of Snell & Wilcox and Pro-Bel, two providers of technology to the international broadc
Mid-market private equity house Lloyds TSB Development Capital has completed the GBP72m merger of Snell & Wilcox and Pro-Bel, two providers of technology to the international broadcasting market.
Both UK-headquartered businesses design and develop hardware and software products used by the broadcast, production and post-production industries to enhance the quality and integrity of content.
Headquartered in Hampshire, Snell & Wilcox was the subject of a GBP22m Advent Venture Partners-backed MBO in 2002. LDC funded the GBP11m MBO of Reading-based Pro-Bel in November 2003.
The enlarged business, which will have a combined turnover of around GBP80m, employs around 450 people and services over 2,000 customers.
LDC and Advent Venture Partners will have a majority shareholding in the company with management owning just over 20 per cent.
The deal was supported by a GBP25m package of senior debt and working capital facilities which was provided by The Royal Bank of Scotland and HSBC.
Kevan Leggett and Steve Carle from LDC, together with Peter Baines from Advent Venture Partners, will join the new company’s board alongside non-executive chairman Gavin Simonds.
Snell & Wilcox and Pro-Bel’s product ranges include digital routing, control, automation, signal distribution systems, production switchers and converters which are used by the majority of the world’s major film studios and broadcasters including Sony Pictures, Warner Brothers, Turner, BBC, C4, NBC, CCTV (China) and HBO.
Following the deal, management and their private equity backers will be focused on developing the business into one of the market leaders in the global broadcast equipment sector, which has been estimated to be worth over USD25bn and forecast to grow by ten per cent per annum over the next four years.
Simon Derry, chief executive of the enlarged business, says: ‘This is a great move for both businesses and creates a consolidated company with the scale and product portfolio to make further inroads into a rapidly growing market.
‘Snell & Wilcox and Pro-Bel make a perfect combination due to their complementary product ranges and strong cultural fit. Both businesses have strong global brands which stand for innovation and customer trust and we are excited that the new business will be able to use these outstanding attributes as a springboard for greater success.’
Leggett adds: ‘The move to digital and high definition broadcasting across a number of media platforms is creating strong opportunities for a business with the scale and reputation of the new entity. The ability of the enlarged group to develop new products from their combined bank of intellectual property offers significant revenue upside opportunities. We’ve brought together two very strong management teams who will also be able to capitalise on the cost synergies the merger creates to drive enhanced profitability.’
