Magenta Partners secures first exit in sale of TAG Worldwide

Funds advised by Magenta Partners, (Magenta), the entrepreneurial growth investor, have secured their first exit in the sale of Tag Worldwide (Tag) to global Business Process Outsourcing company, Williams Lea Group. Tag Worldwide is the largest independent media design and production agency in the world with a strong blue chip customer base including H&M, Coca Cola, RBS, Land Rover, Sony and Unilever.   The sale is the first exit from Magenta’s current portfolio (Magenta launched in January 2008) and represents an IRR of 42 per cent.

Magenta, which specialises in the SME growth investment space, has advised on 8 investments to date, most recently in specialist maternity and childrenswear retailer JoJo Maman Bébé. Magenta’s principal founder investors are the Singh Family Trusts (Tom Singh, founder of New Look, is one of the UK’s leading retail entrepreneurs) and it is now seeking to expand its investor base.

Commenting on the deal, Tom Matthews, a partner at Magenta said: “”Tag is a great business with a great management team. Its market-leading service offering and management’s focused execution of growth opportunities have cemented the business as an out and out market leader in its space, ultimately yielding a strategic premium to shareholder value. We wish them every success in the next phase of their growth.”

The business has grown to over £100m of turnover in 2010 off the back off continued investment in new office openings, expansion in service lines and product development and continued success in winning new blue chip clients.

Steve Parish, who is CEO of Tag and also Chairman of Crystal Palace Football Club comments: “Magenta have a more innovative approach than other PE players we encountered, and struck a chord of partnership from the outset. Against a backdrop of rapid growth, Magenta were able to support us in bringing an increased objectivity to the business and helping define the strategy going forward. We are now well placed to drive the business and continue our geographical expansion in the emerging markets.”

Tag is headquartered in London, has offices in 10 countries and employs 1,100 people. It is a world leader in media design and production and it simplifies the marketing process for its clients by implementing marketing campaigns across multiple delivery channels e.g TV, newspapers, magazines, brochures, direct mail and the internet, in over one hundred different languages.

Advisors:
Financial – RW Baird, David Silver & Anand Baldawa
Vendor due diligence – BDO Stoy Hayward
Legal – Herbert Smith, James MacArthur
Legal (Management) – Rosenblatt Solicitors, Ian Rosenblatt and Nick Foss-Pedersen

Tag Worldwide

Magenta Partners invests in JoJo Maman Bébé

Funds advised by Magenta Partners (Magenta), an investor in high growth businesses, have invested in JoJo Maman Bébé, the specialist multi-channel baby, nursery and maternity retailer for a minority stake in the business.

Magentas’ principal founder investors are the Singh Family Trusts. Tom Singh, founder of New Look, is one of the UK’s leading retail entrepreneurs.

JoJo Maman Bébé has seen a 50% increase in sales from £18 million to £27 million in the two years from July 2009 to June 2011. Pre-tax profits have increased from 4% in the year ending 2009 to a forecast of 8% for year ending June 2011 and there has been a 33% increase in employment, with the business now consisting of 350 employees, up from 241 in June 2009.

Chase Emson, partner of Magenta who joins the Board of the company comments: “This business presents a fantastic opportunity for us to work alongside an exciting and entrepreneurial management team in the next stage of growth for this niche multi-channel retailer. JoJo Maman Bébé operates in a growing sub-sector of the apparel retail market, with a focus on quality, ethics and value that has helped build a strong market-leading brand.

“We intend to work with the management team to help expand the business in the UK and capitalise on international growth opportunities. Our extensive experience within the retail sector will enable us to bring incremental value to this already successful business.”

JoJo Maman Bébé was founded in 1993 by female entrepreneur and managing director Laura Tenison, who was named Veuve Clicquot businesswoman of the Year in 2010 and was awarded an MBE for services to business in 2004. Tenison launched the business as a specialist maternity wear and baby clothing company and in the past six years the retail business has grown organically into a multi-channel operator, now with 36 stores across the UK and employing 350 people.

Laura Tenison, founder and managing director of JoJo Maman Bébé comments: “This is a unique business founded on a strict moral and ethical code of conduct. We have traded well throughout the economic downturn with positive LFL figures. Despite being courted by equity funds for many years we have only now found our ideal financial investor who rates these core brand values. We are delighted to be working with Magenta to grow the business in a sustainable manner and open up new opportunities that were out of the reach of our organic growth plan.”

Laura Tenison was advised on the investment by the consumer team at Clearwater Corporate Finance, who sourced the right equity backer for JoJo Maman Bébé and structured the deal with Magenta.

Richard Shaw from Clearwater comments: “We had long been admirers of Laura Tenison and the way in which she and the management team have developed such a successful multi-channel retail model. Laura has found the right investor that will provide growth capital to the business and Magenta will work alongside Laura to strengthen the management team and grow the business. This deal is testament to the faith that private equity investors continue to show in the consumer sector for businesses with a strong proposition and brand.”

JoJo Maman Bébé

Magenta Partners leads a £7.5m investment in iPrism

Funds advised by Magenta Partners have completed an investment of £7.5m for a minority stake in iprism Underwriting Agency Ltd (‘iprism’).

iprism has developed an online platform that generates truly comparative quotes and full policy documentation in real-time. Brokers and customers can select their policy and buy it in minutes without referral back to the underlying insurers – revolutionising the speed and efficiency of both price testing and purchasing.

iprism’s secure and sophisticated platform has a panel of 15 Insurers offering comparative quotes on generic policy wordings covering 14 SME products plus Mid and High Net Worth. Over 1,000 brokers have signed up to iprism agency agreements, eager to benefit from the efficiency and high service levels iprism offers including their in-house underwriting capability to amend quoted terms in real time.

Gary Burke, founder of iprism commented:

“Having become profitable earlier in the year it was time to involve external capital in the next stage of our development. Magenta understood our business model and could see the enormous potential in the coming years”.

Magenta Partners are a highly entrepreneurial team targeting investment opportunities in growth businesses, and have specific experience in UK online insurance businesses. Magenta Partners’ principal founder and investor are the Singh Family Trusts – Tom Singh, founder of New Look, is one of the UK’s leading retail entrepreneurs.

Chase Emson of Magenta Partners added:

“iprism has developed a strong online platform capable of delivering a range of SME and HNW insurance products to brokers and individuals. We believe the company is ideally placed to benefit from the increasing need for independence, efficiency and competitive pricing in these large sub-sectors of the insurance market. We are excited to be involved in an investment alongside Gary Burke and look forward to working with the management team during the next stage of iprism’s growth.”

iPrism

Magenta Partners leads a £6m investment in Pure Gym

Magenta Partners has led a £6m investment round for budget health club company Pure Gym Limited. This is the company’s first round of institutional funding, having previously raised £3.5m from management and individual investors in 2009.

Pure Gym provides high quality gym facilities at affordable prices and without the need for annual membership contracts. Members pay c.£15.99 per month for 24/7 access to the club facilities which include c.200 pieces of state of the art equipment.

Similar models have been rolled out in the US and continental Europe with great success and the UK remains one of Europe’s largest and most expensive gym markets.

Pure Gym currently has 4 sites (Leeds, Manchester, Edinburgh and Wolverhampton), with a fifth (Sheffield) due to open shortly, and is looking to expand to 20 sites by 2011.

Peter Roberts, CEO of Pure Gym, and his team have extensive leisure experience having founded and/or managed several successful roll-outs including The Langdale Group, Luminar Leisure, Golden Tulip Hotels and Tulip Inns.

Magenta Partners brings significant experience of investing in Health Clubs in the UK, with Chase Emson who was closely involved with MidOcean’s investment in LA Fitness from 2005 to 2008 and Tom Matthews who was a member of the original Bridges Ventures deal team on The Gym.

Tom Matthews of Magenta Partners commented:

“We are extremely excited by this investment. Low cost gyms represent the next phase of growth in the maturing UK health and fitness market. The low cost model presents better value for money for existing gym participants but, as importantly, attracts new, more price sensitive customers to the market. The four sites to date have been supportive of the customer offering and underlying business model, and we are looking forward to working with a very experienced management team in order to continue the rapid growth of the business.”

Peter Roberts, CEO of Pure Gym added:

“We continue to be hugely excited by the opportunities that exist for Pure Gym in its expansion and I am delighted that Magenta, as experienced investors in the sector, are working with us and the Board to deliver our full potential.”

For more information please visit www.puregym.co.uk

Pure Gym