Equistone backs ADM Group

Harriet Matthews
25 October 2021

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Equistone Partners Europe has acquired a majority stake in UK-headquartered marketing agency ADM Group.

CEO Justin Burton and the company's management team will reinvest in ADM as part of the deal.

Equistone said in a statement that the firm has a long-standing relationship with ADM's CEO. Following the investment, the GP intends to support the company with its ongoing organic growth, as well as targeted acquisitions including cross-border deals. ADM had already made several acquisitions prior to Equistone's investment, buying Supremis in 2020 and XL Concept in 2021.

Equistone's Tim Swales and Chris Candfield are to join ADM's board.

The GP is deploying equity via Equistone Partners Europe VI, which held a final close in March 2018 on its EUR 2.8bn hard-cap. The vehicle makes equity investments of EUR 25m-200m, investing in lower mid-market companies with enterprise values of EUR 50m-500m.

The fund was 53% deployed as of June 2021, according to Unquote Data. The vehicle has now made 25 platform investments, four of which have taken place since June, and the vehicle expect to make 25-30 investments in total.

Equistone has made eight platform deals in 2021. These include the recent acquisition of Portugal-based gates, doors and aluminium panel producer Gardengate from Crest Capital Partners. The GP announced two deals in July 2021, acquiring children's apparel and accessories retailer Vertbaudet from Alpha Private Equity, as well as prefabricated construction specialist GSCM.

The GP has also made four exits in 2021 to date, the most recent of which was the sale of online office supplies retailer Bruneau to Towerbrook.

Company
Founded in 1992, ADM Group is a marketing agency that designs, sources and distributes marketing products such as promotional merchandise and point of sale materials. The company works with more than 600 brands, according to a statement, with 600 employees in 51 locations in Europe, the US and Asia. ADM is expected to generate revenues of EUR 320m in 2021.

People
ADM Group – Justin Barton (CEO).
Equistone Partners Europe – Tim Swales (partner); Chris Candfield (investment director).

Advisers
Equity – Raymond James (corporate finance); Travers Smith (legal).
Vendor – GCA Altium (corporate finance); Macfarlanes (legal).