Endless LLP (“Endless”) is pleased to announce the disposal of Encanta Media Limited (“Encanta”) for £2.72 million to Magicalia, an on-line publishing business, partly owned by Encanta’s management, Peter Harkness and Owen Davies.
This transaction represents the first exit by Endless, yielding a significant return on investment in seven months. Endless invested in the business in January 2006, acquiring it out of the administration of Highbury House Communications plc.
Encanta is one of the UK’s leading dedicated hobby and special interest consumer magazine publishers, with specialist titles including Gardens Monthly, The Woodworker, Model boats, Popular Patchwork, Model Engineering, Military Modelling and Radio Controlled Modelling & Electronics.
Christopher Clegg, Investment Director at Endless, who led the deal, commented: “This has been an outstanding investment for us in such short timescale. Peter introduced us to the opportunity and we were very keen to support him having worked successfully with him in the past.”
“We were the only equity house capable of funding the Encanta deal in the time required and are delighted that together with Owen and Peter’s hard work we have strengthened the business. Not only does this current transaction provide a new platform for Encanta to develop its already successful business but it represents a significant milestone for the growth of Endless. We wish Magicalia all the best and look forward to backing Peter again in the near future.”
Magicalia operates around 40 websites and is acquiring Encanta as the base to develop printed media business. Peter Harkness, Chairman of Encanta, said: “Endless, combined with a very loyal and talented staff, provided much needed stability to the business following the collapse of Highbury House – now this transaction secures a great long term future for the business. Encanta’s titles benefit from an astonishing level of loyalty among both readers and advertisers, with subscribers representing an untypically high portion of the readership – something that consumer publishers in general do not generally enjoy.”
Advisers
Advisers to vendors: Legal - Walker Morris, Leeds (Debbie Jackson, Rebecca McCall) Advisers to management: Legal - Marriot Harrison, London (Jonathan Pearce, Jonathan Leigh-Hunt)
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