Funds advised by Magenta Partners (Magenta) have secured their first exit in the sale of Tag Worldwide (Tag) to global Business Process Outsourcing company, Williams Lea Group. Tag Worldwide is the largest independent media design and production agency in the world with a strong blue chip customer base including H&M, Coca Cola, RBS, Land Rover, Sony and Unilever.
The sale is the first exit from Magenta’s current portfolio (Magenta launched in January 2008) and represents an IRR of 42 per cent.
Magenta, which specialises in the SME growth investment space, has advised on eight investments to date, most recently in specialist maternity and childrenswear retailer Jojo Maman Bebe. Magenta’s principal founder investors are the Singh Family Trusts (Tom Singh, founder of New Look, is one of the UK’s leading retail entrepreneurs) and it is now seeking to expand its investor base.
Commenting on the deal, Tom Matthews, a partner at Magenta, says: “Tag’s quality management team, market-leading service offering and focused execution of growth opportunities have cemented the business as a market leader in its space, yielding a strategic premium to shareholder value. We wish them every success in the next phase of their growth.”
During Magenta’s involvement in Tag, the business has grown from GBP70m in turnover to GBP120m and moved from indirect to direct customer engagement. Growth has been driven organically via investment in new office openings, expansion in service lines and product development (critically, the business continued to invest during the downturn in 2009) and continued success in winning new blue chip clients.
Steve Parish, who is CEO of Tag and also Chairman of Crystal Palace Football Club, says: “Magenta have a more innovative approach than other PE players we encountered, and struck a chord of partnership from the outset. They brought a discipline and objectivity to our thinking, internal management systems and strategy and continued to support the business through times good and bad. We are now well placed to drive the business forward and continue our geographical expansion in the emerging markets.”
Tag is headquartered in London, has offices in 10 countries and employs 1,100 people. It is a world leader in media design and production and it simplifies the marketing process for its clients by implementing marketing campaigns across multiple delivery channels e.g TV, newspapers, magazines, brochures, direct mail and the internet, in over one hundred different languages.
