Ideal Shopping Direct is to be taken over by private equity firm Inflexion in a deal that values the company at £78.3m, subject to shareholder approval.
Ideal Shopping Direct (IDS) sells through television and on the internet, and its sale, announced today and agreed at 220p per share, comes two years after company co-founder Paul Wright rejoined Ideal Shopping Direct as non-executive chairman. He had previously left the company in 2007.
It’s an announcement that has been half-expected since last July when directors of the company confirmed that the sale of the company was a possible option. Last week the company announced full-year profits of £6.7m, up from £1.1m the previous year. Internet sales were up by 70% in the year.
Inflexion is buying Ideal Shopping through Cuba Bidco, a company set up to make the acquisition. Ideal Shopping will be taken private as a result. Some 70% of IDS shareholders have already agreed to the sale, including Wright and his co-founder Valerie Kaye.
John Hartz, director of Bidco, said: We are pleased to be investing in the future of the ISD Group as it positions itself in the rapidly evolving multichannel retailing market. We look forward to working with ISD’s accomplished management team and providing the necessary support for ISD to grow during the next phase of its development.”
ISD independent director Paul Wright said: “This proposal represents an opportunity for ISD shareholders to realise their investment in ISD at a significant premium to the share price.
“The proposal comes at a time when the macro environment and consumer spending outlook in the UK continues to remain uncertain, but in spite of this the proposal fully reflects the fair value of ISD.”
