LDC generates 3.9x MM on MSQ sale to One Equity Partners

Min Ho
12 June 2023

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UK-based private equity investor LDC has exited its investment in marketing specialist MSQ Partners to US-headquartered GP One Equity Partners (OEP), generating a money multiple (MM) of 3.9x for LDC, according to a statement.

LDC will reinvest in MSQ as a minority partner alongside One Equity Partners to support the next phase of the company's growth, which will include accelerating international growth and building out its tech-enabled model, it said.

During LDC's holding period, the business's EBITDA grew from GBP 6m to more than GBP 20m, while revenue grew from around GBP 50m to GBP 125m, it said. Part of its growth was generated through five bolt-on acquisitions, it added.

LDC also expanded MSQ's executive leadership during the period, including former MEC Global CEO Charles Courtier, as well as former Dentsu executive director Kate Howe to the board, and more than doubled its headcount from 550 to 1,200 people across America, Asia and Europe.

Last summer, sister publication Mergermarket reported that Houlihan Lokey had been appointed to run the sale of the London-headquartered business. It was expected to be marketed based on EBITDA of GBP 10m-GBP 20m, as reported.

OEP is currently deploying equity via One Equity Partners VIII, which held a final close in April 2022 on USD 2.75bn. The fund typically makes equity investments of USD 30m-USD 300m, targeting technology, industrial and healthcare businesses across North America and Europe, according to Unquote Data.

Company
MSQ is an international group of tech-enabled marketing and PR agencies with clients such as Unilever, Vodafone, The AA, Vitality, Coca-Cola and Zalando.

People
LDC - John Clarke (investment director), Jonathan Bell (managing partner).

Advisors
MSQ and LDC - Houlihan Lokey (corporate finance); Squire Patton Boggs (legal); Browne Jacobson (legal for MSQ).