Our corporate team and corporate partner, Christian Hunt, has advised on the management buyout of the Promotional Products Division (PPD) of Altitude Group Plc, the Surrey-based promotional merchandise and marketing solutions group.
Our corporate team has advised on the management buyout of the Promotional Products Division (PPD) of Altitude Group Plc, the Surrey-based promotional merchandise and marketing solutions group.
On the 23 June Altitude announced that it had agreed a conditional sale and purchase agreement for the division with Stridage Holdings Limited, a new company which is owned by members of the PPD management team. The deal will see Stridage Holdings Limited paying over £700,000 in cash; repayments of £1.5m due to the Group; and the issue of £4,000,000 Loan Notes.
The PPD, which consists principally of AdProducts.com based in Manchester, Ross Promotional in Glasgow, Dowlis Corporate Solutions in Surrey and Non Stop Promotions in Wiltshire, is one of the UK's leading collectives of suppliers and distributors of promotional merchandise to corporate and trade customers. It has historically accounted for the bulk of its revenues and profits and has grown both organically and by acquisition.
The division saw lower revenues between 2007 and 2009 as a result of a reduction in spending by key customers, particularly in the automotive and banking sectors, but the management team has since returned the division to growth and profitability has improved significantly. In the year ended 31 December 2010, the PPD had sales of £15.6m with pre-exceptionals operating profit of £0.9m. The PPD employs more than 100 staff.
Altitude’s remaining division is Technology and Exhibitions which provides various marketing and promotional tools to both suppliers and distributors operating in the promotional merchandise industry.
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