IVE Group valued at up to $314m ahead of float
May 28 2015 at 11:18 AM Updated 11 mins ago Sarah Thompson , Anthony Macdonald , Jake Mitchell
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Printing and marketing services company IVE Group has been valued at $256 million to $314 million or 12 to 15-times next year's forecast profit, ahead of its run at the ASX-boards.
In pre-marketing research from joint lead manager Evans & Partners, fund managers were told IVE Group expects $19 million net profit after tax and amortisation in the 2016 financial year on $356 million revenue.
The broker said IVE's revenue was forecast to grow 12.1 per cent a year, compounded, between the 2013 and 2016 financial years, while earnings were up 29.4 per cent a year in the same timeframe.
Evans & Partners analysts Simon Fitzgerald and Will Dowd valued IVE at $256 million to $314 million on an enterprise value basis, or 8.9-times to 10.9-times earnings before interest and tax.
The valuation also implied 12-to-15-times forecast 2016 financial year net profit after tax and amortisation.
IVE is an integrated marketing services and printing company. The analysts said IVE had market leading positions in direct marketing, niche web offset printing, commercial and digital printing, retail point of display and promotional merchandising.
The company is owned by Wolseley Private Equity and includes the former Blue Star Print Group formerly owned by CHAMP Private Equity.
Wolseley told investors on Wednesday that Blue Star had completed the acquisition of The POS Collective in April, following the purchase of Thompson POS in February and STI Lilyfield last year.
It also acquired merchandising business VaVaVoom and digital agency Task2, on path to being rebranded IVE Group.
IVE Group is chaired by former Blue Star Australia chief executive Geoff Selig, who partnered with Wolseley to buy Blue Star's Australian operations in 2012.
Other directors include managing director Warwick Hay, former Herbert SMith Freehills boss Gavin Bell, former Seven Group executive Andrew Harrison, Paul Selig and former Telstra executive Deena Shiff. Wolseley's James Todd is also on the board.
Lead managers Evans & Partners and Bell Potter Securities are marketing the float to clients this week, ahead of a management roadshow and formal initial public offering.
