| |
30
July 1999
A new company, TDL Infomedia Ltd, formed by Apax Partners
has bought Thomson Directories Limited in a deal totalling
£220 million. 3i will realise its investment in Thomson
Directories and reinvest £10 million in the new company
for an 11% shareholding. Advent International, to whom 3i
syndicated part of its original investment in Thomson Directories,
is reinvesting for a 15% stake in the new company. CIBC World
Markets is underwriting £160 million of banking facilities
to fund a major recapitalisation of the group and provide
finance for future growth.
Thomson Directories will continue to be run by its current
management team which retains a significant minority stake
in the business. The team, headed by current chief executive
Gary List, acquired the company in a £80 million buy-out
in 1997 from US WEST, in a deal led by 3i. In the two years
since the buy-out, the company's turnover has grown by about
25%. The company, which publishes 167 directories under the
'Thomson Local' brand and serves over 85% of the UK population,
is expanding into the Internet market as a directories content
supplier via a series of strategic partnerships. It has recently
agreed a joint venture with Deficom in Belgium for the publication
of local classified telephone directories.
Gary List, Thomson Directories' chief executive, commented:
"We've enjoyed an excellent relationship with 3i and
as we enter into the next phase of our strategy, it has been
appropriate for our shareholders to review their involvement
with the company. Together with 3i, we chose Apax Partners
as new investor partners, as a venture capital company with
considerable experience in the media and publishing sector
throughout Europe and with a reputation for building growing
businesses successfully. We believe they provide an excellent
fit in supporting us in the future."
Commenting on the sale, 3i's Cressida Hogg, who along with
Ian Nolan made the original investment, said: "Our relationship
with Thomson Directories has been a success story right from
the outset. The management team has significantly outperformed
the original business plan we agreed and is now taking the
company on to the next phase in Europe and on the Internet.
This transaction offers an ideal opportunity for us to realise
our investment. It also enables Thomson Directories to continue
its growth story in the UK and overseas and we are therefore
retaining a significant minority shareholding."
Toby Wyles, Director of Apax Partners, commented: "Media
is one of our core areas of specialisation and we are very
happy to have this opportunity to back Gary List and his team
in taking Thomson Directories on to its next stage of growth.
We are particularly excited about helping the company explore
opportunities presented by the Internet and by continental
European expansion."
Thomson Directories Ltd was advised by Credit Suisse First
Boston.
For further information please contact
our Press office.
|
