ISIS takes stake in Reed & Mackay
ISIS Equity Partners ("ISIS") has taken a significant minority stake in Reed & Mackay Limited ("Reed & Mackay"), a leading provider of business travel management services.
ISIS has invested £4.87m as part of the transaction, alongside senior debt and working capital facilities from The Royal Bank of Scotland.
Reed & Mackay specialises in providing strategic business travel management services to professional services firms. Based in the City of London, with an IT development centre in Colchester, it currently employs over 130 people and has revenues of over £55m.
Reed & Mackay provides a "high touch" service to many of the City's top legal firms and companies within the Finance and Insurance sectors. The delivery of this service is supported by leading edge on-line booking and management information systems.
Reed & Mackay was established in 1962 as a travel agent providing both business and leisure travel services. In 1988 it re-branded as a corporate travel management company specialising in providing high quality service. The business has been in the Boardman family since 1972, and from 1995 has been run by Managing Director Richard Boardman and Sales Director Tracy Baumfield. As part of the transaction the management team has been strengthened further with the appointment of Rob Brett, previously of Thomson Travel, as Finance Director and Iain Robinson, previously of American Express Corporate Travel, as non-executive Chairman. Richard Boardman said, "This investment gives us the strength and stability to continue to grow in to the future. We are well placed to capitalise on our established position as the leading provider of high touch strategic travel management services. I am particularly pleased to be working with ISIS in what will be an exciting time for Reed and Mackay."
Andy Gregory, of ISIS, added: "Reed and Mackay is an extremely well positioned business in a rapidly developing market, with significant growth potential. We're delighted to be able to support Richard and his team in taking the business to the next stage in its development".
Andy Gregory and Pete Clarke led the investment for ISIS, whilst Andy Gregory and Steven Dunne will join the Reed & Mackay board on behalf of the institution. Debt funding was provided by The Royal Bank of Scotland who were represented by Phil Mason and Tony Dean.
The transaction was originated by Tim Clarke of BDO Corporate Finance ("BDO"). BDO worked with Boardman and Baumfield for a number of months to develop the most appropriate transaction structure and to source the right funding partners for Reed and Mackay going forward.
Deloitte Corporate Finance and Pinsent Mason advised ISIS, with Halliwell Landau providing legal advice to Richard Boardman and Tracey Baumfield and Hammonds advising The Royal Bank of Scotland.
Published: 10 May, 2006
