Investee Company – Loyalty Management UK Ltd (LMUK)
Investee Company Business Type – Operates the UK’s largest and most comprehensive Customer loyalty programme
Type of Financing – Expansion
Equity Providers – Warburg Pincus
Equity Leader (Individual) – Joseph Schull, Managing Director, Media & Business Services
Debt Providers – N/A
Debt Type – N/A
Debt Leader (Individual) – N/A
Equity Amount – €38.66 million (£25 million)
Total Deal Value – €38.66 million (£25 million)
Other Advisors – LMUK, Ernst & Young (financial), Lovells (legal); Warburg Pincus, Freshfields Bruckhaus Deringer (legal), Ernst & Young (financial), Evolution (technology)
Comments – Loyalty Management UK, operator of the UK’s largest customer loyalty programme, has secured €38.66 million in equity financing from Warburg Pincus.
Based in the UK, Loyalty Management UK Ltd will use the funding to launch and operate Nectar, a customer loyalty programme. Nectar offers consumers the ability to collect points from over 1,800 Sainsbury’s, Debenhams and BP outlets and with all Barclaycard purchases. Points collected in the Nectar programme will be exchangeable for a wide range of rewards like grocery discounts, consumer goods, flights, holidays, restaurant meals, family days out and cinema tickets.
;We intend to transform the loyalty landscape in the UK by developing the first fully integrated loyalty programme that makes points collection and redemption easier for consumers by bringing together several established rewards programmes and four of the leading national retailers,” said Rob Gierkink, CEO of LMUK. “We are delighted to partner with Warburg Pincus and its support enables us to put in place the financial foundation for the successful launch and development of LMUK,” he added.
Joseph Schull, managing director, Warburg Pincus, said: “This is an opportunity to back an outstanding management team and build a durable business in a market that is ripe for consolidation. In evaluating this investment opportunity we have been very impressed with the vision of the four launch Sponsors and with their commitment to making Nectar the UK’s most successful loyalty programme. This investment also builds upon our experience and track record of investing in business information and marketing services companies worldwide over the last three decades.”
The investment in LMUK is being made jointly by two funds, Warburg Pincus International Partners, L.P. and Warburg Pincus Private Equity VIII, L.P.