Promotion Space Group, a UK-based provider of brand awareness and promotion campaigns, has acquired rival Brandspace. No financial terms were disclosed. PSG is a portfolio company of Octopus Private Equity, which helped finance the acquisition. Senior debt was provided by Lloyds TSB.
Octopus Private Equity (“Octopus”) backed portfolio company Promotion Space Group, has recently announced the acquisition of its main competitor Brandspace for an undisclosed sum. Octopus contributed to the transaction alongside senior debt provider Lloyds TSB.
This is the second acquisition Promotion Space Group has completed since Octopus' original investment in April 2007. The first transaction, the acquisition of the
Based in Wilmslow, Cheshire, Promotion Space Group organises promotions, brand awareness campaigns, Mall Trading from retail merchandise units (RMU's) and events in shopping centres and other high footfall sites across the UK.
Promotion Space Group has a blue chip customer base including Sky, Barclaycard, EDF and npower and has worked with all of the top 500 shopping centres in the
This marks the 21st acquisition by an Octopus portfolio company since their first investment in December 2004, demonstrating their commitment to lower mid market buy and build strategies, in growing but fragmented markets. The deal was led for Octopus Private Equity by Richard Taylor, who was supported by Paddy Woods Ballard.
Richard Taylor, Associate Director, Octopus Private Equity commented:
“We have been impressed with Promotion Space Group's growth since our original investment and in particular the expansion of the Mall Trading business, which we would anticipate achieving over 200 Retail Merchandising Units by the end of the year. We are strongly supportive of this follow on acquisition, which will create the market leader in the sector.”
Steve Hughes, CEO, Promotion Space Group, commented:
“The last year has seen a considerable growth in our Mall Trading Division following the investment from Octopus and we see great synergy opportunities between the two companies allowing us to offer an enhanced level of Mall Trading to the expanded portfolio of Shopping Centres. This will also allow us to package and market our growing portfolio of shopping centres better and provide brands with an integrated national blue chip media service.”
Paul Soanes MD of Brandspace commented:
“The strategic and cultural fit between the two companies will ensure a seamless integration of the two businesses allowing us to continue to pursue new Shopping Centre opportunities both in the
Promotion Space Group received Corporate Finance advice from Andrew Campbell and Alexandra Macleod of Ford Campbell and legal advice from Adam Kaucher and Mark Davies of Cobbetts. Octopus' legal advisers were Damien Brown and Kathrine Bancroft of
Financial Due Diligence was completed by Mark Bringloe and Mark Lynott of BDO Stoy
Vendor legal advice was provided by Michael Williams of John Collins. Lloyds' legal advisors were Martin O'Shea and James Benson of Addleshaw Goddard.
The acquisition finance team within Lloyds TSB Corporate Markets,
About Octopus Private Equity (www.octopuspe.com)
Octopus Private Equity, a subsidiary of Octopus Investments, is an investor into fast growing SME companies. The Company specialises in providing