Nearly a year after being put up for auction, Allen McGuire & Partners, an Irish buyout firm, has sold Adare Group, which runs high-street printing firms Prontaprint and Kall Kwik and prints tickets for the FA Cup, the Rugby World Cup and events at Twickenham, for £119.5m (US$208.7m).
Bank of Scotland Corporate has provided an integrated debt and equity package to support the secondary buyout by seven of Adare’s directors.
The new management team, led by Robert Whiteside, have rolled over all of their proceeds, invested new cash and will hold the majority of the equity in the new vehicle, with Bank of Scotland taking a minority stake. The deal will see Nelson Loane, Adare’s founder, minority shareholder and current chief executive, exiting the business.
Allen McGuire had hired Lazard in July to review its strategic options and had been eyeing a £150m sale. In May, Adare had sold its envelope supplier division, Great Northern Envelopes, to a management buyout team supported by Yorkshire Fund Managers in order to cut its debts and refocus the group.
Allen McGuire bought Adare in 2000 in a £103.6m public-to-private transaction in which Loane had made a reported £10m.
Founded in 1991, Adare provides print management, mailing and packaging services for the financial services, retail and public sector and, as well as Kall Kwik and Prontaprint, owns Irish educational publisher CJ Fallon.
In March, the Irish Times said Adare Group posted a profit of more than £17m, excluding goodwill, amortisation and impairment and after £2.3m of exceptional costs, on a turnover of £177.8m while reducing debt by more than £14m.
The group’s head office will be relocated from Dublin to its largest UK site, near Leeds, West Yorkshire, as part of the transaction.
Boutique Livingstone Guarantee introduced BoS to the deal with legal advice coming from Travers Smith. Jamieson Corporate Finance advised the new company with counsel from White & Case and A&L Goodbody. Simmons & Simmons advised Allen McGuire, having worked on the original purchase.