Penton Media Europe Limited
19�Apr�2005
Management Buy-Out
The deal
A management buy-out team has acquired Twickenham-based Penton Media Europe, an integrated business-to-business media company that specialises in the IT, Internet and leisure sectors, from US parent Penton Media Inc for an undisclosed sum.
Following the management buy-out, the management team plans to take advantage of improving cycles in the IT, Internet and leisure sectors to strengthen its existing range of products and also expand into complementary sectors and new markets.
The players
Andy Center leads the new management team as managing director.
"B2B media is changing," Center said. "Customers want measurable, accountable solutions from flexible media owners. Our new MBO structure will allow us to position ourselves at the heart of these new opportunities.
"As the B2B media market recovers and the transformation of the economy continues, we have identified opportunities to build our business in new directions as well as strengthening our core business."
The funder
The deal was backed by Northern Venture Managers (NVM) with a team led by investment manager Peter Hodson.
Hodson said NVM was introduced to the deal by Alex Sheffield at Livingstone Guarantee because it met its investment criteria.
"This was an acquisition from a US parent company of a business with an exciting future but one which has recently experienced tough market conditions," he added. "The team has done a great job of restructuring the company giving it a strong foundation to exploit the improving trends with in the IT and leisure sectors.
"We are delighted to support their expansion plans and look forward to partnering the team during the coming years."
Center said: "The MBO structure - and NVM's support - will allow us to be responsive, quick to market and solidly backed financially as well as giving us the time and freedom to work on new event models and online routes to market."
The advisers
Livingstone Guarantee director Alex Sheffield introduced the deal to NVM and advised both NVM and the management team on the transaction.
Monkjack carried out commercial due diligence on the transaction with a team led by Gerald Andrews.
Andrews said: "The volatility experienced by certain sectors of the industry at times presented a challenging backdrop.
"However, the development of a thorough and professional business plan by Andy Center and his team at Penton, allied to a pragmatic and progressive approach by Peter Hodson and his colleagues at NVM, proved to be a successful formula for completion of what we all believe will be a mutually beneficial transaction."
A team from Baker Tilly led by London corporate finance partner Mark O'Leary carried out the financial due diligence work for NVM. Hammonds, Kermans and Dickinson Dees provided legal advice on the transaction.
Source: M&A June/July 2005 issue
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