Inflexion takes ISD private for £78.3m

The newco controlled by Inflexion made an offer of £2.20 per share for the entire issued and to be issued ordinary share capital of ISD. This represents a 46.2% premium on the trading price of ISD shares on the last trading day prior to the commencement of the offer period. ISD's market cap currently stands at £64.66m.

CEO Mike Hancox and finance director Ian Jebson will take a 23% stake in the business.

ISD had been looking at strategic options for the future of the company since July 2010, including a possible sale of the business. Inflexion was attracted by the business's growth prospects, notably related to the dynamics of TV shopping channels.

The new owner, along with management, is currently looking at possible strategies to drive growth going forward. It remains open to several options, including future acquisitions for the business.

Debt
Lloyds arranged a senior debt package to fund the acquisition, while Beechbrook contributed mezzanine financing.

Company
Established in the 1980s, Ideal Shopping Direct is a digital retailer selling a range of products to consumers via its television shopping channels and the Internet. It notably operates four TV channels: Ideal World, Ideal Extra, Ideal & More, and Create and Craft.

The Peterborough-based company listed on AIM in 2000.

ISD reported sales of £117.3m in 2010 - up from £103.3m in 2009. EBITDA also rose from £2.7m to £8.4m. The group currently employs in excess of 500 staff.

People
John Hartz and Tim Smallbone led the deal for Inflexion. Mike Hancox is CEO of Ideal Shopping Direct.

Advisers
Equity - DC Advisory Partners, Henry Wells, Richard Pulford (Corporate finance); Jones Day, Adam Greaves (Legal); KPMG (Financial due diligence); Javelin (Commercial due diligence); Quinn Partnership, Paul Quinn (Management due diligence); Intuitus (IT due diligence); Redshift Research, Malcom Wall (Commercial due diligence).
Company - Rothschild & Cie, Andrew Thomas, Bod Buckby (Corporate finance); KPMG, John O'Brien (Financial due diligence); Wragge & Co (Legal).
Management - Dow Schofield Watts, James Dow (Corporate finance); Eversheds, Jonathan Robinson (Legal).

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• Topics
• UK / Ireland
• Buyouts
• Consumer
• Take Private
• Inflexion Private Equity
• Rothschild & Cie
• KPMG
• Eversheds
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