
HIG sells Brand Addition to Elysian
HIG Capital has sold its stake in UK-based merchandising company Brand Addition to Elysian Capital after a five-year holding period.
Financial details of the transaction remain undisclosed, though a source close to the situation told unquote" the deal values the business at just less than £50m.
The acquirer has taken a majority stake in Brand Addition via the transaction.
The deal is Elysian's second investment of 2017 and its fourth with capital drawn from its second fund, which held a final close on £250m in July 2015. The fund was around 29% deployed prior to the deal, unquote" understands, and will be around 38.5% deployed thereafter.
The GP most recently acquired Fastflow Group, a UK-based provider of maintenance services for water and gas infrastructure, alongside the company's management in March.
Under the vendor's tenure, the company expanded its range of products and repositioned its strategy to focus on securing corporate clients on long-term contracts. It also opened new offices in Turkey, Russia and China, and acquired US-based Gateway CDI in January 2016.
HIG was invested in Brand Addition via its 2007-vintage pan-European fund HIG European Partners, which raised €600m in commitments.
Debt
Brand Addition's incumbent lenders HSBC and Beechbrook Capital provided debt to support the deal. HSBC provided senior debt and working capital facilities, while Beechbrook provided mezzanine finance.
Previous funding
HIG acquired Brand Addition and its subsidiary, Kreyer Promotion Service, from 4Imprint in a £24m deal in March 2012.
Company
Founded in 1987 and headquartered in Manchester, Brand Addition supplies branded merchandise products to businesses in the automotive, engineering, health and beauty, technology and financial services industries. The company generates a turnover of around £80m, according to a statement issued by Elysian, and has a headcount of around 300.
People
HIG Capital – Alastair Mills (principal); Carl Harring (managing director).
Elysian Capital – Ken Terry (CEO).
Brand Addition – Chris Lee (CEO).
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