VCT News
Matrix and Beringea back MBO of Campden Publishing
1 February 2006 - Campden Publishing Limited ["Campden"] has been sold by private investors, including its founders to its management team in a £6 million Management Buy Out. Campden is a leading advertising-funded B2B publishing and events business operating in the healthcare and private wealth management markets.
Co-investors Matrix Private Equity Partners and Beringea have invested £2.5 million and £1.5 million respectively, with the balance of the transaction having been funded by management roll-over and cash investment. A working capital facility was provided by HSBC.
The MBO team was led by Managing Director, John Pettifor. Privately owned Campden operates in two attractive niche markets that each has distinct growth drivers and defensive characteristics. In Healthcare, Campden has capitalised not simply on the trend of increased spending across Europe, but also on a broader purchasing base as greater autonomy and influence increasingly lie with patient-facing staff. Its titles and events target nurses, GPs, pharmacists as well as hospital administrators. In its private wealth management business, Campden serves the Ultra High Net Worth investment market, a segment of potent spending power that is highly resilient regardless of economic and market conditions. The titles and events target the investors and their advisors.
Almost half of Campden's titles benefit from the credibility afforded by official endorsement or accreditation from the relevant professional/trade bodies. These include Hospital Healthcare Europe that is the official publication of HOPE, The European Hospital and Healthcare Federation, Nursing in Practice Events that are accredited by the Royal College of Nursing and The New Generalist that is the official journal of the Royal College of General Practitioners.
Managing Director, John Pettifor said the deal would enable Campden and its management team to take advantage of further opportunities in its key markets. "Campden is a very successful business and a highly respected publisher with very strong links with the professional bodies. These three elements provide us with a unique and very robust platform from which to expand."
Eric Tung of Matrix Private Equity Partners said: "From our first meeting we were convinced that this was a business we wanted to invest in because of the strength of the management team, the quality of the products and Campden's strong business relationships. This is an eminently scalable business and we expect significant sales growth in the short term."
Jamie Kennell of Beringea said "This was an ideal transaction for us. We know and understand the sector and quickly realised that we would be backing an ambitious and focused team. We will be working closely with the company to develop their business model over the medium-term to produce a highly attractive trade asset"
Media and publishing represents a core investment sector for both Matrix and Beringea and the investors decided to pool their expertise to win a highly competitive mandate.
London-based Campden is profitable, with annual revenue of £6 million and employs 56 permanent and contract staff.
About Beringea
Beringea is an international venture capital firm with offices in London and Detroit. In the UK Beringea manages ProVen VCT, ProVen Health VCT, ProVen Growth & Income VCT and Global Rights Fund II. Beringea launched its first VCT in 1996, making it one of the most experienced VCT managers in the UK. ProVen Growth & Income and ProVen VCT are highest performing VCTs of their launch years, respectively, according to www.taxefficientreview.com. For more information please visit www.provenvcts.co.uk.