Montagu Private Equity, a leading European Private Equity fund,
has led and arranged the management buyout of Editions en Direct
and ID Editions from its founders for an undisclosed consideration.
The new group is the leading French publisher of horse racing
newspapers.
The transaction was financed through a combination of
institutional equity provided by Montagu Private Equity, and
mezzanine and senior debt from HSBC CCF. Jean-Claude Seroul and
Jean-Marcel Bonnefoy, who have managed the group for more than 30
years, will remain with the business and will re-invest a
significant amount in the new company.
Founded in 1964 by Jean-Claude Seroul, Editions en Direct, based
in Aix-en-Provence in Southern France, has 118 employees. It
generated a turnover of € 41 million in the year to 30 April 2004
and has had consistently high levels of profitability. It sold 53
million newspapers in 2003 and publishes six daily horse racing
newspapers (Paris Courses, Tiercé Magazine, Bilto, Matin Courses,
La Gazette des Courses, Le Favori), two monthly horse racing
magazines (Turf Magazine and Stato), and Lotofoot, a weekly
football betting magazine.
The group's success lies in its exclusive focus on horse racing
newspapers, a sector which experienced a steady growth in line with
that of the French horse racing and betting industry, and from
leading the consolidation of the sector. Management has focused on
building market share through frequent launches of new titles and
changes in format, adjusting quickly to competitive threats, and
building the lowest cost base in the industry. This strategy has
left Editions en Direct as the major player in its segment, with a
54% market share by circulation.
The management of the company will remain unchanged, ensuring the
continuity of this successful strategy. Jean-Claude Seroul and
Jean-Marcel Bonnefoy welcomed the entrepreneurial partnership with
Montagu Private Equity which provides the backing of a strong and
committed investor to support them during the next phase of
expansion.
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