ECI reaps 4.5x on Bargain Booze IPO

Ellie Pullen
31 July 2013

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ECI Partners has reaped a 4.5x money multiple on its full exit from Bargain Booze, which listed on the AIM this morning under its holding company, Conviviality Retail.

The off licence chain, which announced its plans to become a public company last week, floated on the AIM with a market capitalisation of £66.7m. According to ECI, the pre-IPO placement was twice over-subscribed and saw 30 investors participate.

ECI held a 75% stake in Bargain Booze prior to the flotation of the company. The firm first invested in Bargain Booze in January 2006. In a deal worth £63.5m, the firm backed the management buyout of the company alongside AIB Corporate Banking. ECI acquired its stake from Bargain Booze's parent company, Electra Partners-backed BWG.

Headquartered in Crewe, Bargain Booze was founded in 1981 and currently employs 240 staff. The group recorded revenue of £372m for the year ending April 2013, as well as an EBITDA of £12.5m.

The business operates as a franchised chain of off licence convenience stores, currently holding 611 stores and 461 franchisees. Bargain Booze specialises in discounted beer, wine and spirits, but also sells snacks, groceries, soft drinks and confectionary in its franchises.

Zeus Capital and Oriel Securities were appointed joint brokers for the listing, while Zeus also acted as nominated adviser. DLA Piper acted as legal adviser to Bargain Booze, while PwC was appointed reporting accountant and Grant Thornton performed the short form report.

The realisation of its shares in Bargain Booze marks ECI's third exit in the last year. The firm divested its stake in UK-based outsourced healthcare provider Harmoni to CareUK in October last year. Most recently, the GP reaped a 2.5x return on its investment in CliniSys by selling the company at the beginning of June to Montagu Private Equity in a secondary buyout.