KCP announces bolt-on acquisition for Pandora Books

Key Capital Partners ("KCP") announces that portfolio company, Pandora Books ("Pandora"), the UKs leading supplier of book collections to schools, has acquired competitor, Badger Publishing Limited ("Badger"), from EDCO, the Irish educational publishing division of Smurfit Kappa Group plc.

KCP has supplied all of the funds required to support the bolt-on as part of Pandoras strategy for organic and acquisitive growth. KCP originally backed the management buy-out of Pandora in April 2009. Based in Kings Lynn in Norfolk, the company offers book collections that cover a wide range of reading abilities and meet all of the criteria of both the National Curriculum and the Primary Strategy for Literacy. Pandora recently added to its catalogue and sales operations with the launch of a specialist website, which offers teachers and school librarians a one-stop collections bookshop.

Stevenage-based Badger opeates in the same book collections market as Pandora. The company was established in 1989 and also incorporates a thriving educational prublishing arm. The entire Badger team, lead by general manager and publisher, David Jamieson, will remain with the business following its acquisition.

Owen Trotter, KCP partner and non-executive director at Pandora, commented: "The acquisition of Badger Publishing will consolidate Pandoras position in the boxed collectoins segment of hte educational book market. By successfully integrating the two businesses, we will be able to maximise the combined entitys operational and financial performance, raising its profile in the broader market and increasign critical mass."

Managing director at Pandora, Martin Green, added: "In the eight months since KCPs original investment, Pandora has experienced tremendous development, while mantaining the excellent standard of customer service that has been fundamental to our ongoing growth and success. The merger with Badger creates a fantastic opportunity to combine our expertise to save busy teachers precious time by offering evening better selections of titles and enhanced customer service. With the enhanced market penetration that this acquisition will provide, we look forweard to the next stage of our development."

Chairman at Pandora, Trevor Goul-Wheeker, led the acquisition for the firm. He added: "Pandora has achieved strong year-on-year growth and, compared to the volatile consumer market, the educationsl book market has remained solid over the last year. We have strengthened our management team with the acquisition of Badger and are particularly interested in the growth achieved by the companys own publishing range. The combined business will provide publishers with the ideal vehicle to reach schools with the best literacy and project-related books in the market."

Keith Ferguson, partner at PKF (UK) LLP in Ipswich advised KCP on the deal and performed financial due diligence. He said: "This acquisition deomonstrates KCPs commitment to supporting portfolio companies with continued investment. The two businesses are an ideal strategic fit and with a government funded customer base are relatively insulated form negative pressure in the wider economy. As such Pandora is well positioned for continued growth.