Boomerang has completed its public-to-private move after LDC and senior members of the company’s management team closed a £7.1 million deal.
Lorraine Heggessey, a former controller of BBC One and chief executive of Talkback Thames, has joined forces with part of the senior management team at TV production company Boomerang to lead a public-to-private (P2P) deal.
Support for the transaction has come from LDC, the private equity arm of Lloyds Bank.
An initial offer was made back in June and following the closing of the deal Boomerang is cancelling its admission to AIM, which is now expected to take place in late August.
Under the terms of the deal, LDC, senior management at Boomerang and Heggessey formed Boom Pictures to launch the deal.
Heggessey will now take up the role of executive chair, with Boomerang CEO Huw Eurig Davies becoming the new company’s CEO. Boom Pictures will be based in Boomerang’s current Cardiff headquarters.
Boomerang initially listed on AIM back in November 2007, raising £3 million on admission. Its half yearly reports published back in February revealed that for the six months to 30 November 2011 revenue had dipped from £16.29 million to £15.99 million while EBITDA grew by 10.6 per cent to £1.36 million.
The business made three acquisitions while on the junior market. In October 2009 Boomerang bought Indus Films for up to £2.4 million and followed that up by acquiring Oxford Scientific Films for £515,000 in June 2011. Back in 2009 Boomerang purchased Method for an undisclosed amount.
Heggessey comments, ‘Huw [Eurig Davies], the management team and I have been working towards this day for months so that we can build on the successes of Boomerang and take the company to the next level.
‘We already have a great business and we want to build on that to grow a thriving, creative and ambitious group.’
The deal for LDC follows an announcement in 2011 that the firm was committed to investing £200 million in the technology media and telecommunications (TMT) sector over the next two years.
Daniel Sasaki, managing director of LDC London, adds, ‘LDC has a strong investment track record in media investing, including a successful exit from TV production company Mersey TV.
‘We are excited about the opportunity to back Lorraine Heggessey, a leading light of the industry.’