Electra Partners is pleased to announce that its portfolio company, AXIO Data Group ("AXIO"), has agreed to sell the JOC Group to IHS Inc. (NYSE: IHS), a leading global source of critical information and insight for capital-intensive industries. The transaction is subject to customary closing conditions, including regulatory approvals in the United States.
Following completion of the transaction, Electra Private Equity PLC ("Electra") will receive loan repayments from AXIO of approximately £35 million; this will take total cash proceeds from Electra's investment in AXIO to approximately £64 million, or more than 70% of original cost.
JOC Group is the authoritative provider of business intelligence, data and events for container shipping and logistics professionals worldwide. Its products include PIERS, the most comprehensive database of US seaborne import and export activity in the world, providing data and information services to thousands of subscribers globally; The JOC, the leading information and marketing services provider for the US domestic and international containerised cargo community; and TPM, the must-attend event for the global container shipping community with conferences in North America and Asia.
Electra invested £92 million in AXIO in April 2013. Following the sale of the JOC Group, AXIO will comprise six market-leading information businesses providing critical, and often industry-standard, information and tools. Operating in over 25 countries worldwide, the group's brands include Vidal and MIMS in the healthcare sector, TechInsights in the intellectual property licensing sector, OAG and Breakbulk in the global transportation sector and RISI in the forest products sector.
Alex Fortescue, Chief Investment Partner at Electra Partners, said:
"Our strategy for the AXIO investment is to improve the performance and positioning of each of the businesses in the portfolio before selling them individually to the right strategic acquirer. This is exactly what we have done with the JOC Group and the transaction will deliver an excellent result for Electra."
Alex Cooper-Evans, Partner at Electra Partners, continued:
"This is a terrific result for Electra. JOC Group profits have grown by 60% in two years thanks to first-class execution by the AXIO and JOC teams, led by Henry Elkington and Gavin Carter respectively. We think there is a compelling logic to IHS acquiring the business and we wish Gavin and the team well for the future."
Henry Elkington, CEO of AXIO Data Group, said:
"This is the first major realisation from the AXIO portfolio, and it is a great example of our strategy of building and then realising value in our businesses. We will continue to drive performance in our businesses by focussing on markets where we can lead, investing for growth, and driving efficiency. In parallel we will develop relationships with potential strategic acquirers."
Alex Fortescue, Alex Cooper-Evans and Sarah Williams are responsible for the investment in AXIO Data Group.
Today's announcement continues a very busy year for Electra Partners. This realisation follows the partial realisation of Premier Asset Management in September 2014, the disposal of Electra's stake in LondonMetric Property in June and the sale of Lil-lets Group in November 2013. On the new investment front, Electra Partners has completed four control buyouts and, including bolt-on transactions, 10 deals in total since September 2013.
Electra Partners refers to Electra Partners LLP acting on behalf of its client Electra Private Equity PLC.
For further information please contact:
Andrew Honnor and Matthieu Roussellier, Greenbrook Communications
+44 (0)20 7952 2000
Andrew Kenny and Nicholas Board, Electra Partners
+44 (0)20 7306 3902
Note to Editors:
About Electra Partners LLP
Electra Partners is an independent private equity fund manager with over 25 years' experience in the mid-market buyout sector. During the last 25 years it has invested in excess of £4.1 billion in over 200 deals. As at 31 March 2014, the firm had funds under management of over £1.5 billion including capital available for investment of circa £300 million.
Electra Partners' flexible investment strategy allows it to invest broadly across the private equity market with a particular focus on Buyouts and Co-investments, Secondaries and Debt. In addition to this, its long-term capital base means it is not constrained by expiring investment periods or exit pressure driven by fund raising cycles and is therefore able to realise investments only when returns are maximised for its investors.
The firm's major client is Electra Private Equity PLC ("Electra"), a private equity investment trust which has been listed on the London Stock Exchange since 1976. Electra's long-term investment performance has been consistently superior to private equity and other benchmarks. Over the ten years to 31 March 2014, Electra has seen diluted NAV per share growth of 260% (equivalent to a ten-year annualised return on equity of 14%) compared to a 129% increase in the FTSE All-Share.
For further information please visit www.electrapartners.com.
Electra Partners LLP is authorised and regulated by the Financial Conduct Authority.
About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today's business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs more than 8,000 people in 31 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2014 IHS Inc. All rights reserved.