EXIMS Company Investment Portfolio
SAATCHI PLC:A team of EXIMS executives took over the management of SAATCHI which at the time
was the worlds 3rd largest advertising and communications conglomerate,
but through a series of poorly financed acquisitions by its flamboyant
founders, the Saatchi brothers, were in serious financial crisis. Over a 10 year period, SAATCHI was saved from
their crises, financially restructured, operationally reorganized and sold off in
2 parts to Publisis SA and WPP, Plc.
MediMedia International Group: Approximately 100 executives and managers of the
IMS Medical Publishing Division acquired a portfolio of 60 health care
publishing and communication businesses operating in 40 countries in a 1991 leveraged
management buyout. The initial purchase
price was Euro 70 million with Euro 60 million being financed by a package of
senior, mezzanine and seller debt and Euro 12 million in management
equity. Over a 9-year management ownership,
the business grew by over 250%, the original debt was entirely repaid and the
equity value was increased by 21 times. MediMedia was sold to Vivendi Universal
SA for Euro 275 million ($ 300 million).
Kleinwort Benson Capital participated in the debt and equity financing.
Adidas AG: In 1993, members of the
EXIMS Group assumed management control of adidas AG the famous branded German
athletic shoe and sportswear company that had fallen from its once premier
status as the world’s largest athletic shoe company to a very financially
weakened 5th place “old brand” business. The new principals acquired ownership control
leveraged via a DM 650 million loan from Credit Lyonais Bank of France. In 1995 and 1996, adidas was floated to the
public on the Frankfurt and Paris stock exchanges for a gross market capitalization
of over DM 4 Billion, thus realizing a profit to its private owners of over DM
3 Billion ($1.5 Billion). Argos Soditec
SA participated in the initial equity financing.
Corporation:Members of the EXIMS Group acquired management and ownership control of EMCORE
from its founders and venture capital partners in 1994 for approximately $54
million. EMCORE is a technology company producing various materials and
electronic components relating to silicon and gallium arsenate wafers and
strata. The Company was listed on the NASDAQ in 1997 at a capitalization of
$120 million and its value once reached over $2 billion.
International LLC (“SSI”): The EXIMS Group along with two well established US venture capital
firms (Boston Ventures and Prairie Capital), acquired 80% of the SSI business
in January 2003 for an enterprise value of $90 million. SSI is in the business of providing data
samples and participations panels for the market research and opinion polling
industries. The acquisition was
leveraged with $43 million in bank-syndicated financing and $10 million of
seller financing, all of which has now been fully repaid. With four members on
the SSI board, over the next two years, EXIMS led a very successful effort to expand
SSI’s operations to Europe and the Far East. In May 2005, the owners of SSI,
including EXIMS, sold 54% of the equity of SSI to Providence Equity Partners
for an enterprise value of $350 million, resulting in a 3-yr ROI of over 250%.
Communications Holdings LLC: The EXIMS Group has formed a new company, ,
which has acquired 100% of the ownership of Profile Pursuits, Inc’s (“PPI”)
shares and the business Intellectual Property Rights from its UK owner, Profile
Media Group Plc. PPI (now renamed to
HealthSpring Communications LLC) is in the business of publishing Pride Life,
the largest Gay and Lesbian lifestyle publication in the US. EXIMS has injected nearly $7 million of
capital to restore the PPI balance sheet deficit and to rebuild and expand the
business. In addition, EXIMS has
complemented the PPI management capabilities with the skills and experience of
its own team, including appointing an EXIMS member as CFO, and providing
significant participation of other EXIMS members on the HealthSpring board.