Exponent to exit publisher Dennis in GBP 300m trade sale

Harriet Matthews
16 August 2021

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Exponent is to sell UK-headquartered publisher Dennis to market peer Future in a deal that values the business at around GBP 300m.

The sale has generated returns of more than 3x money and IRR of around 40% for Exponent.

Following the sale, Exponent is to retain control of automotive media and e-commerce platform Autovia, which was launched as a standalone business in March 2021, separating the publication from the Dennis group. Peter Plumb, who previously held executive positions at JustEat and MoneySupermarket, was appointed as chair of the business. Brands within Autovia include Car Throttle, which Dennis acquired in August 2019.

The deal will therefore see all Dennis titles other than Viz, Fortean Times, Cyclist and Expert Reviews acquired by Future. These titles will be retained by Broadleaf Group, the holding company of Autovia and formerly Dennis.

Exponent acquired Dennis in July 2018 from the estate of the company's founder, Felix Dennis. The company posted 2017 revenues of GBP 165m. Contemporary press reports stated that the company could be valued in the GBP 150m-200m region. The business was marketed based on EBITDA of GBP 22m-24m and was expected to generate a 6-7x valuation multiple, according to Unquote sister publication Mergermarket.

Exponent acquired Dennis via Exponent Private Equity Partners IV, which was launched in 2017 with a GBP 1.5bn target.

Apollo Global Management provided a GBP 95m unitranche facility to back the buyout, while Lloyds Bank provided senior debt of GBP 25m.

Exponent said in a statement that the GP focused on US expansion and new product initiatives during the investment period. Under Exponent's ownership, Dennis acquired titles including Kiplinger Washington Editors. The company also sold New York-based Mental Floss to Minute Media in September 2018.

Exponent's recent exits include the sale of BBI Healthcare to trade in June 2021, followed by the GBP 400m sale of previous parent company BBI Group to Novo Holdings later that month.

The GP acquired chilled desserts manufacturer Gü in May 2021, as reported.

Company
Founded in 1973 by Felix Dennis, Dennis publishes current affairs and personal finance titles in the US and the UK, including The Week, The Week Junior, MoneyWeek, and the Kiplinger brands. The company is headquartered in London, with additional offices in Washington DC and New York. Dennis posted revenue growth of 12% in the 12 months to June 2021, according to a statement.

People
Exponent – David McGovern (partner).
Dennis – James Tye (CEO).
Future – Zillah Byng-Thorne (CEO).
Autovia – Andy Oldham (CEO).

Advisers
Vendor – Travers Smith (legal); PwC (financial due diligence, tax); LionTree (corporate finance).