Gloo Networks plc - First Day of Dealings on AIM following £30 million Placing

 Gloo Networks plc, a technology company established to acquire and operate companies in the media sector, is pleased to announce its admission to trading on the AIM market of the London Stock Exchange ("AIM") at 8:00 a.m. (London time) today ("Admission"). The Company's ordinary shares will trade under the ticker GLOO.

The Company has raised £30 million before expenses through the placing of 25,000,000 ordinary shares at a placing price of 120p per ordinary share. On Admission, there will be 25,600,000 ordinary shares in issue in the Company and the market capitalisation of Gloo will be £30.7 million at the placing price. The net proceeds of the placing will be used to carry out due diligence on potential acquisition targets and provide working capital.

Gloo intends to acquire and operate trusted consumer brands in the media sector, initially with an enterprise value in the range of £250 million to £1 billion. The Company is led by digital transformation experts Rebecca Miskin (Chief Executive Officer), formerly Digital Strategy Director and Change Agent at Hearst Magazines UK, and Juan Lopez-Valcarcel (Chief Product and Operations Officer), who was previously Chief Digital Officer for Pearson International.

Gloo has received strong backing from major institutional investors, with significant additional capital expected to be raised at the time of the target acquisition. The principal focus for a platform acquisition is the UK, the US and (to a lesser extent) Europe.

Gloo is seeking to benefit from the changing relationship between consumer brands, media owners and the advertising industry; this relationship continues to experience structural change, driven by the evolving prevalence of internet usage and the increasing adoption of data analytics, allowing businesses to better understand and serve consumers. The convergence of the internet and media sectors has created multiple investment opportunities with numerous companies or businesses identified within Gloo’s target universe.

Gloo intends to acquire businesses that appeal to attractive socio-economic groups, and through the use of data and technology, transform these businesses to fully realise their digital potential, thereby unlocking value and increasing profitability.

Rebecca and Juan will work with Marwyn, the asset management and corporate finance group, which was founded in 2002 by James Corsellis and Mark Brangstrup Watts. Marwyn Value Investors LP has invested approximately £10 million in the placing.

Liberum acted as Nominated Adviser, Joint Broker and Joint Bookrunner to the placing. Numis acted as Joint Broker and Joint Bookrunner.

The Company's admission document is available at www.gloonetworks.com. 

Rebecca Miskin, Gloo Chief Executive Officer said: “We are delighted with the support that we have received from a wide range of blue-chip institutional investors and extremely excited by the opportunities ahead.  The convergence of the internet and media sectors provides Gloo with a wealth of opportunity to deploy its expertise, and we are looking forward to applying it.”

Howard Kennedy banks another success at 2015 M&A Awards

Law firm Howard Kennedy has been crowned the “Best Banking Team 2015” at the annual Acquisition International 2015 Mergers & Acquisitions Awards.

The prestigious M&A Awards celebrate the outstanding efforts and achievements of dealmakers, management teams, financiers and professional advisers.

Howard Kennedy was given the award for its role in advising English Rose Enterprises, a company owned by Andrew Perloff, on the recent acquisition of Beales, a UK department store chain currently operating around 30 branches.

Michael Harris, Partner and Head of M&A at Howard Kennedy, who led the team advising English Rose Enterprises said: “We pride ourselves on being an approachable, professional, commercial and responsive law firm providing excellent value and support to our clients, both domestic and international.  I am thrilled that we have been recognized as Best Banking Team 2015.”

Awards Co-coordinator Jonathon Hicks, said: “This award is given solely on merit and is awarded to commend those most deserving for their ingenuity and hard work.  With this year attracting competition that spans a diverse range of sectors and regions, it is truly an honour to recognize Howard Kennedy LLP for its success over the past 12 months.”

Warwick's Lauren Taylor took inspiration from her baby to create a natural and organic coconut oil baby skincare range.
 

After launching Kokoso Baby with her husband, Lauren secured a deal to stock their products in 200 Boots stores nationwide. To help the company grow quickly and fulfil the Boots order, Lauren then applied for and received a £10,000 government-backed Start Up Loan and mentoring support from the Coventry and Warwickshire Reinvestment Trust (CWRT).

Kokoso Baby uses coconut oil from an ethical family-run farm in Thailand and is made using a unique coconut-friendly process. Kokoso Baby coconut oil is more lightweight than others, so making it perfect for baby skincare, as its nourishing nutrients absorb quicker to moisturise and protect. Lauren is passionate about the use of coconut oil but wanted to ensure that the products used, as well as the packaging, is all ethically sourced and eco-friendly.

As with many new pre-profit businesses, it can be challenging to convince a bank to lending start-up capital, and this is where CWRT stepped in. Lauren explains: “CWRT listened, got excited by the potential in our business plan, and offered advice and support – and that’s worth a lot to a new business. We had support throughout the whole loan application process, from advice on writing a business plan to creating financial forecasts.”

CWRT also assigned the fledgling company with a business mentor, Robin Underhay, to guide the company through its first year.

Taking a major gamble, Lauren was joined by her husband, Mark, and determined that the business model would not succeed on a small scale. She explains: “This meant giving up our comfortable lifestyles with a young family and reasonably well-paid jobs, and dedicating every spare minute to making it work. That’s a scary prospect and the decision didn’t come lightly.”

Kokoso Baby Coconut Oil is a Boots ‘Inspired by Baby’ winner. This is a programme run by the retailer for parents with ideas for baby products that make life easier for other mums and dads.  As soon as the business started dealing with Boots, it meant growing quickly – which threw up a myriad of challenges. Lauren adds: “The more products you sell, the bigger your cash flow issues become. The loan from CWRT has enabled us to bridge the gap and drive the business forward.”

Mike Musson, Chief Executive of CWRT, concludes: "Kokoso Baby is an inspiring business and their organic products are sure to be a hit with parents across the country. We are proud to have provided not only finance, but the business support necessary to take the company from a product company selling to a small community, to one that is now stocked in a leading national retailer.” 

CWRT’s start-up loan programme is specifically designed to help new businesses like Kokoso Baby lending between £1,000 and £75,000, and providing mentoring support pre and post loan application to help entrepreneurs start their own business and to encourage employment across the region.

To find out more about the loan fund, contact Mike Musson, CEO of CWRT on 07539 879487 or email: [email protected]