NVM latest to embrace buy-and-build

NVM Private Equity has invested £7m in CloserStill Holdings Ltd, a newly created platform company in the events and exhibitions industry. The investment should set the firm up for a series of bolt-on opportunities, the new black in the mid-market.

CloserStill, which was established in September 2008, will seek to make up to 10 acquisitions over the next three years in an attempt to capitalise on strong appetite from major media groups for mid-sized exhibitions and event businesses. NVM is supporting the business with an initial investment of £4m, with the remaining £3m to be drawn down to fund the acquisitions. The business will be based in the London area.

NVM is backing the previous management team of Ithaca Business Media, the business-to-business exhibition, events and media group it acquired in April 2005. Ithaca was successfully sold to United Business Media for £14.25m in September 2007 in a deal that represented a total IRR of more than 60% over the course of the investment (April 2004, page 23 and 8 October 2007, page 47). After exiting the business in 2007, the management team and NVM were looking at the possibility of re-entering the exhibition market and set up CloserStill for this purpose.

"The sector offers a great opportunity to build a business through acquisition to a size where its critical mass becomes an attractive target for a larger media group," says Peter Hodson, investment manager at NVM.

Hodson led the deal for NVM and Mauro Biagioni worked with him. Hodson will be on CloserStill's board. Andy Center is the CEO of the company.

Ian Piggin of Wragge & Co provided legal advice to NVM and Tom Raymond of Armstrong TS provided commercial due diligence. Legal advice to the vendor was provided by Daniel O'Connell of Kerman & Co.

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