Loewy has agreed a financing deal with media and communications private equity specialist Veronis Suhler Stevenson. VSS will help finance ambitious growth plans for Loewy, including two further mergers to be announced in the coming weeks.
VSS brings a package of US and European investment support worth £12m, which will enable Loewy to close the mergers, as well as take the group to 350-strong in staff numbers, £47m in turnover and pro-forma profits of £7.5m a year.
The move follows the withdrawal last December of one of Loewy’s principal backers Risk Capital Partners, which sold its 25 per cent stake back to the group’s existing shareholders.
The forthcoming mergers will add to Loewy’s design and communications capabilities in FMCG, tech and corporate sectors.
According to Loewy chief executive officer Charlie Hoult, ‘Our ambition has always been to build a group that has heavyweight creative integrity as well as the scale to work with the world’s leading brands. With fire power to close more deals and bigger deals, we should see some industry-shaping announcements in the months ahead.’
With $2.8bn (£1.4bn) under management, VSS offers credibility for Loewy to drive its growth plan. VSS will also receive a seat on Loewy’s board of directors.