St Ives buys Tactical in £15m deal
A SALES and marketing business based near Chester has been sold to a quoted group in a £15m deal.
Tactical Solutions employs 320 staff carrying out field sales and marketing for clients including FTSE 100 companies.
London-based St Ives said it would pay £13m in cash for 90% with the balance settled with new shares. Further payments may be made if the business hits performance targets.
It will pay up to £4m in 2011, and a further £5m in 2012, covered by loan notes with an option to acquire the remaining 10% of shares from August 2013.
The deal represents a significant pay day for managing director and 80% shareholder Lorna Davidson who founded the business 10 years ago. Her colleagues David Bryant and Geoffrey Faulkner each hold 10%.
In the year to December 2009 Tactical Solutions generated underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of £1.3m and a profit before tax of £600,000 on sales £7.7m. It is expected to generate underlying EBITDA of £2.8m on revenue of £11.5m for the year to December 31.
“The acquisition of Tactical Solutions represents a further step in the implementation of St Ives’ strategy to provide products and services in addition to print which will enable the group to add further value to existing and new clients,” said the company in a statement.
Law firm DWF advised on the deal. The corporate team, led by Frank Shephard and Lisa Stavropoulos, assisted by Kelly Harvey and the tax team of John Toon and Sajeda Motala, advised the sellers.
