Matrix has sold Tottel Publishing
Matrix Private Equity Partners (MPEP), the small buyout specialist, has sold Tottel Publishing, a publisher of high quality books on law and tax and information services for lawyers, accountants and business professionals, to Bloomsbury Publishing plc, the publishers of the Harry Potter novels, for £10 million. The £3 million proceeds for MPEP VCT shareholders represent a return of 4 times its original investment of £750,000 for its Income & Growth and Matrix Income and Growth 4 Venture Capital Trusts (“VCTs”). This is the 7th successful cash exit for MPEP in the last two years.
MPEP originally acquired Tottel with its management in October 2004, from LexisNexis, a subsidiary of Reed Elsevier. The business, based in Haywards Heath, Sussex, employs 27 staff. Annual turnover of just over £6 million has grown around 80% since investment. The business is run by three highly successful entrepreneurs, managing director Jim Smith, publishing director, Sarah Thomas and finance director, Jill Williams. The company is chaired by Iain Livingston; one of MPEP’s operating partners.
Mike Walker, a partner at MPEP who was on the board of Tottel said: “Tottel is a simple honest growth story. Buy a good business with a real niche at a sensible entry price, back quality managers who grow revenues and profits and sell at a sensible exit price. This is the MPEP strategy that works whatever the point in the cycle.”
“Our fourfold return has been achieved despite a weak divestment market, but reflects the fact that Tottel is a high quality asset. Bloomsbury will now take the company to the next stage in its development. We wish them and the Tottel team every success”
Jim Smith, managing director of Tottel said. “Tottel has performed well with annual revenue growth targets consistently achieved. Matrix has been a supportive financial partner to the business and has played a role in its growth. With a firmly established brand we are now in a strong position to develop further under Bloomsbury’s ownership.”