3i has sold its stake in Williams Lea to Deutsche Post in a deal worth €158m.
Williams Lea was founded in 1820 as a printing business, and has developed into a worldwide company employing 6,500 employees supplying information management and business process services to investment banks, legal firms, retail financial services companies, telecoms and car manufacturers.
The company's services cover marketing communications, customer correspondence and internal information processing. Customers include Goldman Sachs, Prudential, BMW and Glaxo SmithKline.
A long-standing relationship
Williams Lea was first backed by 3i in 1965. In March 2004 3i invested €29.7m to enable the business to increase its service offering to its existing blue chip customer base, secure new longer term contracts and make important acquisitions. At the same time a €20.7m tender offer resulted in 3i obtaining a minority stake of 38% in the business.
3i was able to beat off competition from rival private equity houses to win the deal because it was prepared to invest as a minority shareholder. It also listened to the shareholders' needs and delivered an innovative structure that combined growth capital with a placing to deliver shareholder liquidity. Finally, the management team recognised that 3i had deep pockets and would be prepared to invest further to support acquisitions or contract wins.
Rapid growth
3i's injection of capital had an immediate impact on the business. In October 2004, Williams Lea acquired Bowne Business Solutions (BBS), a US market leader in BPO services, in a deal worth €148m. 3i worked with the management team to review the acquisition, carried out due diligence on the deal, produced a 100 day plan and raised €200m worth of debt.
Angela Lane, Partner, 3i, said: "Our equity investment and ongoing involvement with Williams Lea gave the Board confidence to support the acquisition BBS funded by debt. The BBS acquisition was value changing, both in terms of protecting the key investment banking clients who required a global supplier, in providing access to the US market and in building a global platform to attract a strategic partner such as Deutsche Post."
In August 2005 Williams Lea made two further acquisitions. It purchased US-based Uniscribe for €28m and Australian based Creatis for €6m. 3i supported the company in reviewing the acquisition due diligence, integration plan and dealing with Williams Lea's bank.
Building a strong team
At the time of 3i's investment we agreed to work with the management to strengthen the Board and the management team. 3i was instrumental in hiring a new Finance Director and Chairman for the board. Both of them had a major impact on the business. The Finance Director, Liz Catchpole, developed a new financial reporting system for the increasing complexity of the company's activities and geographic spread as well as introducing an increased focus on working capital management. Chairman Robert Walker worked with 3i management and the family to achieve and satisfy the diverse shareholder needs which ultimately resulted in the investment by Deutsche Post.
3i also supported Williams Lea in developing senior contacts in leading corporates. Lane explains: "Our intention was to support Williams Lea in building its relationships with decision makers in prospective client organisations - both corporate and government".
In the lead up to 3i's exit, 3i worked closely with the management team and advisors UBS to ensure that all the diverse shareholder needs were addressed by the proposed sale to Deutsche Post.
Tim Griffiths, Williams Lea CEO, said: "3i demonstrated invaluable support as an investor in our business during a period of rapid organic and acquisitive growth. The sale of 3i's equity stake to Deutsche Post will enable us to further accelerate our global expansion and build on our leading position in the corporate information solutions market."