Kohlberg & Company has agreed to acquire the ownership interest of RLJ Equity Partners and State Street Global Advisors in MarketCast, a provider of information and data analytics to marketers and researchers in the entertainment industry. RLJ and State Street acquired MarketCast in December 2014 from Shamrock Capital Advisors.
MarketCast works with marketers and researchers at major motion picture studio and production companies to develop and execute marketing strategies. The company’s services are available worldwide and include materials testing (trailers, TV spots, print ads, etc.), concept and positioning studies, exit polls, recruited audience screenings, tracking studies, and focus groups. Other services include brand and franchise studies, title tests, post-release studies, and attitudes and usage studies.
In August 2015, under RLJ and State Street ownership, MarketCast completed the acquisition of Insight Strategy Group, a New York-based research and strategy agency with practices in lifestyle, consumer goods, retail, and services businesses (www.insightstrategygroup.com).
MarketCast was founded in Boston in the late 1980s by three sociology professors – Joseph Helfgot, Frank Romo, and Michael Schwartz. Today, the company is headquartered in Los Angeles with offices in New York, Boston and London (www.mcast.com).
Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on companies with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company was founded in 1987 and is based north of New York City in Mt. Kisco, NY (www.kohlberg.com).
“The MarketCast management team is highly enthusiastic about this new chapter for the company,” said Henry Shapiro, CEO of MarketCast. “Kohlberg has a 30-year track record of investing in service-based businesses with a focus toward long-term growth. The firm represents a strongly capitalized partner that will enable MarketCast to invest in new products and services, and expand into new and emerging forms of entertainment content, distribution, and marketing.”
“Through its suite of innovative, data-driven products and services, scalable, worldwide infrastructure, and dedication to exceeding customer expectations, MarketCast is positioned to serve the growing demands of the global entertainment marketplace,” said Ahmed Wahla, a Kohlberg Partner. “We see tremendous growth opportunities for MarketCast, both organically and through acquisitions, and look forward to partnering with management in the next phase of the company’s development.”
RLJ Equity Partners invests from $15 million to $30 million in companies valued between $50 million and $250 million. Target companies will have operating profits greater than $7 million and operating margins greater than 10%. Sectors of interest include aerospace & defense; auto & transportation; business services; consumer retail; general industrial; and media & telecom. RLJ Equity Partners was founded in 2006 by Robert Johnson in partnership with The Carlyle Group. The firm is headquartered in Bethesda, MD (www.rljequitypartners.com).
The buy of MarketCast by Kohlberg is expected to close by the end of November. “We feel fortunate to have had the opportunity to work with the MarketCast team, and assist the company through a period of rapid expansion and success. We are confident that the company will continue its growth trajectory in partnership with Kohlberg,” said Jerry Johnson, a Managing Director at RLJ.
Ropes & Gray (www.ropesgray.com) represented Kohlberg & Company on this transaction with a team led by private equity partner Christopher Rile that included finance partner Steven Rutkovsky, benefits partner Loretta Richard, tax partner Eric Elfman, intellectual property transactions partner David McIntosh, and business & securities litigation partner Peter Welsh.
Lazard Middle Market (www.lazard.com) was the financial advisor to MarketCast.
© 2016 Private Equity Professional • 10-26-16
