Griffin Serves as Investment Banker to IBS Direct in its Sale to Logan Marketing Group

IBS Direct (“IBS”) provides direct marketing program management, cross-channel marketing technologies and high-quality printing solutions to effectively implement its customers’ direct marketing campaigns. Based in King of Prussia, PA, IBS has been in business for more than 40 years. In 2011, IBS hired its current management team, which resulted in considerable organic growth through the implementation of direct marketing services, innovative printing processes and successfully completing and integrating four acquisitions.

Situation
Originally founded in 1969 by the Schnyder family, IBS was managed by George Schnyder until 2011, when he decided to hire a new CEO and CFO as the initial phase of a long-term succession plan. This enabled George to step back from the day-to-day operations of the company. After new management successfully grew IBS, George wished to complete the succession plan by selling the company and having a new owner continue its growth. While IBS had grown substantially, however, the post-recession printing industry had performed poorly, leaving a lack of potential strategic buyers.

Solution
IBS engaged Griffin to manage a broad competitive sale process to supplement the lack of potential strategic buyers. Griffin approached a wide range of financial buyers, including private equity firms and family offices, in addition to strategic buyers. The process produced multiple offers, and IBS ultimately selected Logan Marketing Group (“LMG”) as purchaser. LMG is a holding company based in Lumberton, NJ, and is owned by a group of direct mail industry executives. LMG’s strategy is to acquire multiple direct mail companies and create a fully integrated direct marketing services company with IBS as the platform. The IBS management team invested in LMG and will continue to manage the company post-closing. Griffin was also engaged by LMG to raise the debt capital required to support the IBS acquisition via a competitive capital raising process. LMG ultimately selected Bank of America as its lending partner, which provided both acquisition and working capital financing.

For more information on this transaction, contact John A. Lee, Senior Managing Director, at 610.205.6106 or Thomas A. Hill, Vice President, at 610.478.2034.