Exit for private equity firm as stake in Birmingham business sold for £28m
REGIONALLY-based private equity firm ISIS Equity Partners has made a 3.4x return on its investment through the sale its stake in Birmingham-based marketing services firm Inspired Thinking Group (ITG) for £28m to Bridgepoint Development Capital.
ITG – based at Fort Dunlop – was founded in 2009 and was the subject of an ISIS-fronted deal in 2010 when £3.2m was injected into the business.
Since the backing from ISIS, ITG – which specialises in “below the line” marketing activity such as point of sale, digital and direct marketing – has grown sales form £14m to £43m.
It is expected to target European markets after being acquired by Bridgepoint.
Adrian Willetts, a partner of Bridgepoint Development Capital, said: “ITG offers a compelling customer proposition and has demonstrated an ability to win and retain customers in a large, growing market.
“We believe that the ITG team is capable of doubling the size of this business in the next five years.”
Bridgepoint previously supported chief executive Simon Ward in 1999 in the management buy-out of SP Group, a point of sale marketing materials manufacturer which was successfully sold to St Ives Group in 2004.
Ward said: “The success of ITG to date has been driven by its ability to challenge traditional ways of working and in doing so deliver results for our customers in an increasingly complex and competitive market.”
Catalyst Corporate Finance in Birmingham was lead adviser on the deal.
The acquisition finance team at Lloyds Bank Commercial Banking provided funding for the transaction. The deal was led for Lloyds by Mark Bolshaw and Martin Cordey.
