NEWS

WIRES

OTHER

Bayside Credit Partners Provides Financing for the Acquisition of Ideal Shopping Direct by Inflexion Private Equity

Ideal Shopping sells a broad range of general consumer products (craft, home and leisure, personal care) through four TV shopping channels, the internet and mail-order catalogues. The TV channels broadcast to over 23 million households in the UK, where they operate on all available digital TV platforms (Freeview, Sky, Virgin Media and Freesat). Four specialist e-commerce websites support the TV channels, and are increasingly used as a channel for booking orders and acquiring new customers.

The acquisition was funded by a combination of senior and mezzanine debt. Bayside Credit Partners, the direct-lending arm of Bayside Capital, provided mezzanine financing, alongside Beechbrook Capital. The new £10 MM mezzanine facility, which carries a 7-year tenor, provides Ideal Shopping with a flexible funding structure, capable of supporting the company's rapid growth over the next few years. Ideal Shopping's revenues grew by 13.5% to £117 million in 2010, and over the next few years are set to benefit from growing digital TV penetration, expanded broadcasting contracts and the introduction of new product categories.

Ideal Shopping Direct is Bayside Credit Partners' seventh primary market debt financing transaction over the past 12 months. Earlier this year, Bayside Credit Partners had provided mezzanine and PIK funding in support of the refinancing of Caffe Nero, a leading coffee chain in the United Kingdom.

Lionel Laurant, Principal at Bayside Credit Partners, commented: "We are very excited to back Inflexion's acquisition of Ideal Shopping Direct. Ideal Shopping has established itself as one of the UK's leading players in the rapidly-evolving multi-channel retail market. We expect the company to continue to deliver superior growth, and look forward to a successful partnership with Inflexion and the management team."

About Bayside Credit Partners

Bayside Credit Partners, an affiliate of Bayside Capital, provides primary debt financing to performing middle-market companies in the United States and Europe. Bayside Credit Partners has a broad investment mandate and provides senior debt, second lien, uni-tranche, mezzanine, and subordinated debt for refinancings, growth capital, acquisitions, and balance sheet recapitalizations. Credit facilities typically range from $15 to $100 million for companies with revenues of $50 million or more.

About Bayside Capital

Bayside Capital is a credit oriented investment firm with more than $4.5 billion under management. Focused on middle market companies, Bayside invests across several segments of the primary and secondary debt capital markets with an emphasis on long term returns. With eight offices throughout the U.S. and Europe and 200 investment professionals to draw upon, Bayside has the experience, resources, and flexibility required to provide capital solutions quickly, and the strategic and operational expertise to help support its investments. Bayside invests through three separate groups: (1) Bayside Credit Partners provides primary debt financing to performing middle market businesses in the U.S. and Europe, (2) Bayside Fixed Income invests in public and private credits in the secondary debt market, and (3) Bayside Special Situations provides rapid access to debt and equity capital, in partnership with existing stakeholders.

Bayside is active across a wide spectrum of industries, including business services, manufacturing, healthcare, retail, food/agriculture, and specialty finance. With the ability to invest in all parts of the capital structure, Bayside is able to develop creative financing solutions and consummate transactions on an expedited basis. Bayside is the credit affiliate of H.I.G. Capital, a leading global private investment firm with more than $8.5 billion of equity capital under management. Since its founding in 1993, H.I.G. Capital has invested in more than 200 companies worldwide and has developed an impressive track record for creating value for its partners and investors. For more information, please refer to the Bayside Capital website at www.bayside.com.

H.I.G. European Capital Partners, LLP
Lionel Laurant, +44 (0) 207 318 5700
Principal
llaurant@bayside.com
F: +44 (0) 207 318 5749
or
Sensu Serpen, +44 (0) 207 318 5700
Principal
sserpen@bayside.com
F: +44 (0) 207 318 5749
www.bayside.com