Total Home Entertainment

Deal Summary

Catalyst advised the shareholders on the sale of Total Home Entertainment (THE) to a management buy-out supported by 3i plc.

THE is the UK's largest independent wholesaler of home entertainment products, with sales of £300 million across DVDs, CDs, books and PC multimedia.

The business had successfully completed a management buy-out in 2000 at a point when the business was at break-even.

At the time of the deal, operating profits had reached £10 million due to the successful strategy of THE supporting the major retail multiples, increasing their market share of home entertainment product sales.

What difference did we make?

Catalyst was engaged by the shareholders of THE to advise them on their strategic options for the business which included a partial sale, a full trade sale or a sale to the management team.

Catalyst subsequently led an exit process that provided the shareholders with deliverable opportunities in each of the options, from which the shareholders opted for the partial sale route.

The structure of this partial sale was highly unusual, generating a significant capital sum whilst ensuring the shareholders retained boardroom control.