Endless, the Leeds-based private equity firm, has sold Encanta Media Limited, a UK magazine publisher, to Magicalia, an online publishing company which is partly owned by Encanta’s management team, in a £2.72m deal.
It is Endless’ first exit and comes just seven months after its January 2006 initial investment. It acquired the business from the administration of Highbury House Communications after the firm was contacted by the managers of Encanta, Peter Harkness and Owen Davies. No actual price was disclosed other than an indication that a seven-figure sum was paid.
Christopher Clegg, investment director at Endless who led the deal, said: “This has been an outstanding investment for us in such a short timescale. Peter introduced us to the opportunity and we were very keen to support him, having worked successfully with him in the past. We were the only equity house capable of funding the Encanta deal in the time required and are delighted that together with Owen and Peter’s hard work we have strengthened the business. Not only does this current transaction provide a new platform for Encanta to develop its already successful business but it represents a significant milestone for the growth of Endless. We wish Magicalia all the best and look forward to backing Peter again in the near future.”
Endless was set up in December 2005 by Garry Wilson, a former partner at both Arthur Andersen and Ernst & Young.