ISIS Equity Partners has sold RLA Group, a full service marketing and communications group, to a rival, The Mission Marketing Group.
The £20 million deal is structured with an initial consideration of £9.5 million, and a further £11.5 million payable depending on specific performance criteria being met.
The sale to TMMG will yield a multiple of 3.7 times the original investment to ISIS’ clients.
ISIS invested £2.35 million through its Baronsmead VCT funds in the £3.6 million replacement capital deal with RLA in December 2002.
RLA has 60 staff and offices in Bournemouth, Belfast and Edinburgh. Its clients include Direct Wines, Goodyear Dunlop, Kingfisher, Teleflorist and Volkswagen Group.
Other investments by ISIS in business services include LBM, Occam, Reach,Reed & Mackay, and Green Issues.
Buckingham Corporate Finance advised shareholders on the sale. Ian Leaman at the firm said “I also advised Roland Long, the founder of RLA on the sale to ISIS in 2002. Since then, the business has more than doubled its profitability, expanded geographically and developed its range of marketing services.”