UK - Dunedin makes 6x money on Letts Filofax sale

Dunedin invested £7.1 million in Letts Filofax and has generated proceeds of £42.2 million from its investment. This represents a six times money multiple and an IRR of 52% over five years.

With Group Headquarters based in Edinburgh, Letts Filofax designs and sells organisers, diaries and related accessories through its two UK and nine overseas subsidiaries. It has one manufacturing plant which produces over 22 million books per year. The Group is firmly established as the UK market leader and exports its products to over 40 countries worldwide.

Dunedin initially invested in Letts in 2000 when it supported the £17m management buyout led by managing director, Gordon Presly and finance director, Gordon Raw. The strength and focus of the management team impressed Dunedin and the deal was completed quickly in the face of fierce competition from trade and other financial buyers. It acquired Filofax the following year in a £14.5 million acquisition. Dunedin supported the acquisition soon after the initial buyout recognising that consolidation of the Letts and Filofax brands would bring attractive synergies.

Since the original buyout, the combined business of Letts and Filofax has seen annual profits grow by over 70% driven by a strong management team and Dunedin's strategic support.

Gordon Presly, Letts Filofax group chief executive, commented, 'Since acquiring Filofax, the Group has developed into a robust international operation producing excellent returns. We have invested cash, time and resource in all aspects of the company both in the UK and overseas which has helped to generate an impressive financial performance over the past five years. We have a committed management team who are re-investing in the Group and that is a very positive sign for all our customers and employees.'

Brian Scouler, managing director, portfolio at Dunedin added, 'Letts Filofax has been a great investment for us with a successful exit generating a six times money multiple. The business has performed superbly since we supported the buyout six years ago. We wish the company continued success in the future.'

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• Buyouts
• UK / Ireland