Proposed acquisition of Engine by a new strategic investment partner, Lake Capital, to form a new 21st century marketing services group
Enables Engine to take the next stage in its development and take advantage of industry growth opportunities
Lake to provide its strategic, operational and financial backing in a sector where it has a long standing involvement and track record
Engine will form a partnership with Lake’s current investments, ORC International, the global market research and business intelligence firm, and in due course Trailer Park, the world’s leading entertainment and content marketing agency
London, 31 July 2014: The Engine Group (“Engine”), the integrated marketing communications group, is pleased to announce its proposed acquisition by a portfolio company of a new strategic investment partner, Lake Capital (“Lake”).
Lake is a private equity firm which partners with entrepreneurs and management teams to build growth oriented, service-based businesses through organic growth and acquisitions. The transaction will be structured by the acquisition of Engine’s existing share and debt capital. Engine management and staff will continue to participate as shareholders following the transaction and thus form a long term and binding partnership with Lake.
Lake has a long standing involvement and strong track record in the marketing and communications services sector and has backed a number of successful growth stories in recent years. As a result of the transaction, Engine will form a partnership with Lake’s current investments, ORC International, the global market research and business intelligence firm, and in due course Trailer Park, the world’s leading entertainment and content marketing agency. This partnership, which will be ultimately be known as and formed within a new Engine Group holding company (Engine having initially been acquired within the existing ORC portfolio structure), will create a next generation marketing services’ company built for the 21st century, offering multi-dimensional and integrated services to benefit Engine’s customers, with each business retaining its individual identity.
Lake will provide strategic, operational and financial backing to Engine alongside its extensive experience in the sector to enable Engine to take the next stage in its development and take advantage of industry growth opportunities as the global economy continues its recovery. Terry Graunke, Lake’s Chairman and co-founder, will become Engine’s Executive Chairman and Engine’s co-founder Peter Scott will become Vice Chairman and Head of Global Strategy. Engine was advised by Ingenious Corporate Finance.
Terry Graunke, Chairman, Principal and Co-Founder of Lake Capital, said: “We are very excited about bringing Engine into our marketing services group – it has great agencies, people and clients and a unique business model which attracted us to it. We have a proven history of working with talented and entrepreneurial people and growing businesses in the sector both organically and through acquisition. We are planning that Engine, ORC and Trailer Park form the basis of a major, independent global force in marketing services and communications.”
Peter Scott, Group CEO of The Engine Group, said: “I have known Terry for many years going back to the original WCRS buyout in 2004. He understands marketing services, the intrinsic difference and appeal of the Engine model and has the appetite and resources to support our growth ambitions.”
Debbie Klein, CEO of Engine UK, said: “Lake’s investment and the collaboration with ORC and Trailer Park provide exciting and new opportunities for our clients and staff. It also guarantees that everything that Engine is known for is retained – brilliant specialists that are better together, dedication to providing clients with the best services, all structured within an independent group with significant staff ownership that has been built for this century, not the last.”
For further information please contact:
Reg Hoare/Andrew Leach
+44 (0) 20 3128 8100
Notes to Editors:
Lake Capital is a private equity firm that focuses on investments in service-based enterprises. The firm currently manages more than $1 billion in equity commitments and seeks to build leading services companies through organic and acquisition-enhanced growth. More information about Lake Capital is available at www.lakecapital.com
The Engine Group has over 1,000 employees principally based in London, New York, San Francisco, Shanghai, Hong Kong, Brussels and Edinburgh. Engine is the parent company of a family of award winning partner businesses including WCRS, Partners Andrews Aldridge, MHP, Jam, Synergy, Calling Brands, Fuel, Mischief, Slice, Transform, Fantastic Thinking, Deep Focus and Noise. More information is available at http://www.theenginegroup.com