Dunedin Ent.it. Regulatory News (DNE)

9 Mar 2006 15:05

Dunedin Enterprise Inv Trust PLC09 March 2006 For Immediate Release: Thursday 9 March 2006 Dunedin Sells Letts Filofax for £45 million-------------------------------------------------------------------------------- Dunedin Capital Partners ("Dunedin"), the UK mid-market private equity house,announces today that Letts Filofax Group ("Letts Filofax"), the market leadingsupplier of personal organisers and diaries, has been sold to Phoenix EquityPartners for £45 million. Dunedin Enterprise Investment Trust PLC ("Dunedin Enterprise"), the investmenttrust managed by Dunedin, will receive £18.2 million from the sale of LettsFilofax which was valued at £17.4 million at 31 October 2005. The uplift on saleof £0.8 million represents 2.8p per share. Dunedin Enterprise invested a totalof £4.0 million and will have received £24.1 million in capital and income fromthis investment. Dunedin's investment has returned a money multiple of six times which representsan IRR of 49% over five years. With Group Headquarters based in Edinburgh, Letts Filofax designs and sellsorganisers, diaries and related accessories through its two UK and nine overseassubsidiaries. It has one manufacturing plant which produces over 22 millionbooks per year. The Group is firmly established as the UK market leader andexports its products to over 40 countries worldwide. Dunedin initially invested in Letts in 2000 when it supported the £17 millionmanagement buyout (MBO) led by Managing Director, Gordon Presly and FinanceDirector, Gordon Raw. The strength and focus of the management team impressedDunedin and the deal was completed quickly in the face of fierce competitionfrom trade and other financial buyers. It acquired Filofax the following year ina £14.5 million acquisition. Dunedin supported the acquisition soon after theinitial buyout recognising that consolidation of the Letts and Filofax brandswould bring attractive synergies. Since the original buyout, the combined business of Letts and Filofax has seenannual profits grow by over 70% driven by a strong management team and Dunedin'sstrategic support. Gordon Presly, Letts Filofax Group Chief Executive, commented, "Since acquiringFilofax, the Group has developed into a robust international operation producingexcellent returns. We have invested cash, time and resource in all aspects ofthe company both in the UK and overseas which has helped to generate animpressive financial performance over the past five years. We have a committedmanagement team who are re-investing in the Group and that is a very positivesign for all our customers and employees. " Brian Scouler, Managing Director, Portfolio at Dunedin added, "Letts Filofax hasbeen a great investment for us with a successful exit generating a six timesmoney multiple. The business has performed superbly since we supported thebuyout six years ago. We wish the company continued success in the future. " For further information, please contact: Dunedin Capital Partners LimitedBrian Scouler 07811262796Fiona MacRae 0131 718 2313 Letts Filofax GroupGordon Presly 0131 654 7402 / 07976 330 882 Binns & Co PR Limited 020 7786 9600Peter Binns 07768 392 582Chris Steele 07979 604 687Annie Evangeli 0777 850 7162 EDITORS NOTES 1. Dunedin (www.dunedin.com)Dunedin provides equity finance for management buyouts and management buyinswith a transaction size of £10 million - £50 million. It is an independentprivate equity house, owned by the directors and staff, operating throughout theUK from offices in Edinburgh and London. Dunedin invests in establishedcompanies, in a broad range of industry sectors, which demonstrate a history ofsales and profit growth. It helps to define and set the strategic goals of thesecompanies whilst empowering the management teams that run them and providesadditional capital for growth if required. Dunedin is authorised and regulatedby the Financial Services Authority. 2. Letts Filofax Group Ltd (www.letts.com, www.filofax.com)Letts Filofax Group Ltd is a market-leading consumer products company combiningtwo globally recognised brands in Filofax, which offers personal organisers andrelated accessories, and Letts which supplies diaries and related stationeryproducts. The Group markets its products to retail and corporate customers inthe UK, Western Europe and North America as well as several other internationalmarkets. The Group has a strong reputation for product design and innovation,creating fashionable, high quality products. Letts Filofax Group isheadquartered in Edinburgh, Scotland with facilities and offices in London,Burgess Hill (near Gatwick), Birmingham, France, Italy, Germany, Sweden,Denmark, USA, Canada and Hong Kong. This information is provided by RNS The company news service from the London Stock Exchange