Media and communications buyout firm Veronis Suhler Stevenson has invested $24 million (€17 million) in Loewy Group, a UK-based marketing company.
The investment will be used to finance two unspecified acquisitions by Loewy, which will expand its design and communications capabilities in its core fast-moving consumer goods, technology and corporate sectors. It will then employ 350 people, with a turnover of $94 million.
Loewy is the tenth investment by the VSS Structured Capital Fund, which provides non-control capital to mid-market media companies in North America and Europe. Previous investments include German newspaper Berliner Verlag, UK TV company ITN Networks and advertising company TMP Worldwide.
George Cole, co-manager of VSS Structured Capital, said: “The company is a little more recession resistant than others in the sector because it is based in the fast moving consumer goods sector.” His company uses the structured capital fund so VSS can take advantage of opportunities where a buyout is not an option, he said.
According to figures published by VSS, marketing services will be the largest and fastest growing communications sector in the next four years – with a market size of $455 billion expected by 2010. The communications industry as a whole is also forecast to grow to $1.2 trillion in the same period, equivalent to an annual growth rate of 6.6 percent.