Memorandum submitted by ALL3MEDIA
ALL3MEDIA welcomes the opportunity
to submit evidence to the Treasury Select Committee inquiry into
One of the UK's largest independent
TV production groups, ALL3MEDIA was founded in 2003 when an experienced
management team came together with Bridgepoint Capital (a private
equity firm) to acquire Chrysalis TV. Since then the company has
expanded rapidly, growing organically and through acquisition.
In 2006 Bridgepoint sold its stake in ALL3MEDIA to Permira.
Today the company has a turnover
of over £215 million and employs over 1,000 people.
ALL3MEDIA's experience of private
equity is extremely positive. The availability of private equity
finance was instrumental in the foundation and success of ALL3MEDIA,
however, just as important has been the high level of support
given by the company's private equity investors.
ALL3MEDIA's positive experience of
the private equity model of ownership differs fundamentally from
much of the negative rhetoric of recent months; the company's
private equity investors have always placed an emphasis on the
"long term" value of the business. Without the involvement
of private equity ALL3MEDIA would not be the British success story
it is today.
1. ALL3MEDIA is one of the UK's largest
independent TV production groups, owning 10 UK and international
TV production companies, covering all major programme genres,
with particular strengths in drama, entertainment, factual entertainment
2. ALL3MEDIA has produced of some of the
UK's best-known and successful programming including: Hollyoaks
(Channel 4); Castaway (BBC); Shameless (Channel 4); Midsomer Murders
and Wild at Heart (ITV); and Elizabeth I (Channel 4/HBO).
3. ALL3MEDIA was founded in 2003 when an
experienced management team came together with Bridgepoint Capital
(a private equity firm) to acquire Chrysalis TVthe TV production
business owned by Chrysalis plcin a £45 million deal.
In September 2006, after three successful years with Bridgepoint
Capital, the Permira Funds acquired Bridgepoint's stake in ALL3MEDIA
in a transaction with a total value of £320 million.
4. ALL3MEDIA has expanded rapidly, growing
organically and through acquisition. At the time of the company's
formation ALL3MEDIA had a turnover of approx. £90 million
and employed around 330 members of staff. Today the company has
a turnover of over £215 million and employs over 1000 people.
5. In March 2007 ALL3MEDIA was recognised
by the Sunday Times as the UK's best-managed privately-owned firm
and as the 4th fastest growing company under private ownership.
6. All3MEDIA's experience of private equity
is extremely positivewithout private equity investment
ALL3MEDIA simply would not exist. The availability of private
equity finance was instrumental in the foundation and success
of ALL3MEDIA, the management team could not have raised the necessary
level of finance any other way. However, just as important was
the level of involvement from Bridgepoint Capital. Bridgepoint
worked in a genuine partnership with the ALL3MEDIA management
to implement the company's strategy for growth particularly helping
to manage a fast moving acquisition process.
7. The Bridgepoint team's involvement was
crucial during the numerous acquisitions that ALL3MEDIA made in
the company's first three years. They had an almost constant presence
at the ALL3MEDIA office during the acquisition process and their
long experience was crucial as new acquisitions were integrated
into the ALL3MEDIA portfolio.
8. When Bridgepoint sold its stake to Permira
in 2006 it represented the natural conclusion of the first stage
of ALL3MEDIA's life. Bridgepoint are specialists in growing small
and mid-cap companies. Once ALL3MEDIA had become established as
a successful, stable and growing business, it was right for Permira,
which specialises in more mature companies, to invest. Permira
now takes a more "hands off" approach, which suits the
increasing experience of the ALL3MEDIA management team. Permira
continues to be extremely supportive of the management team's
plan for continuous, sustainable growth. In the first six months
of Permira's investment ALL3MEDIA has already made a major acquisition
in MME MOVIEMENT, one of Germany's leading independent production
companies and will benefit in the future from Permira's international
9. ALL3MEDIA's positive experience of the
private equity model of ownership differs fundamentally from much
of the negative rhetoric of recent months. ALL3MEDIA's private
equity investors have been ideal partners for growth and investmentthe
emphasis has always been on enhancing the long term value of the
10. In early 2003, changes to the regulations
concerning ownership rights of content were implemented with the
aim of putting the independent production sector onto a more stable
commercial footing. Partnership with private equity allowed ALL3MEDIA
to be "first off the blocks" in taking advantage of
a changed regulatory environment designed to create a thriving
and vibrant independent production sector.
11. ALL3MEDIA represents a British success
story in an increasingly globalised sector. The Government has
identified the crucial role the creative industries have in securing
the future competitiveness of the UK economy. In making world
leading and awarding winning drama, entertainment, factual entertainment
and sport, ALL3MEDIA is playing a key role in driving the growth
of the UK creative sector; ensuring high quality British programming
dominates TV schedules in the UK, and across the world.