- Private equity firm Apollo Global Management (NYSE: APO) is investing $300 million (about €276 million) in Cimpress PLC, which is the parent company of Vistaprint
Private equity firm Apollo Global Management (NYSE: APO) is investing $300 million (about €276 million) in Cimpress PLC (NASDAQ:CMPR). Cimpress PLC (NASDAQ:CMPR) is the parent company of online printing giant Vistaprint along with well-known brands like National Pen and BuildAsign.
Cimpress — which is based in Dundalk, Ireland — was especially hit hard by the COVID-19 pandemic. The company employs over 10,000 people and hits over $2.7 billion in annual revenue.
Cimpress creates over 46 million items a year. And due to lost revenues caused by the COVID-19 pandemic, the company announced it was going to focus on cost-cutting initiatives. The company’s revenues declined by about 10% due to the pandemic and operating losses increased.
The investment from Apollo is in the form of second-lien secured notes with a 12% coupon.
In a statement, Apollo said that this deal marks the second large capital solutions transaction led by its Hybrid Value business this month, which brought its April investment total to $900 million.
The Hybrid Value business utilizes the deep expertise of Apollo’s private equity and credit businesses to provide debt and equity solutions to corporates around the world. And last week, Hybrid Value and related Apollo funds were able to act expeditiously and sign a $600 million preferred equity investment in Expedia, which is the market leader in online travel brands (under a similarly compressed timeline). This investment will help ensure Expedia has the financial flexibility and resources to emerge from the current economic environment in a position of strength.
Apollo’s Hybrid Value business is an extension of its integrated global platform that operates without barriers among its Private Equity, Credit and Real Assets teams. And Apollo believes this differentiated approach enables the firm to better leverage opportunistic and risk management insights to successfully invest capital throughout market cycles and at different levels of the capital structure. Hybrid Value had closed on its inaugural $3.25 billion fund in March of 2019 and the fund is currently over 60% committed.
Key Quotes:
“Cimpress is an established leader in mass customization, serving millions of small business customers through leading brands such as its flagship Vistaprint business. The durable demand for its products and services has driven significant growth over the past twenty years, and we believe its products are critical to small businesses during both challenging and stable times. This investment helps optimize the company’s capital structure, and we look forward to working with Robert, Sean and the rest of the management team.”
-Reed Rayman, Partner in Private Equity at Apollo
“When we created Hybrid Value, we saw the opportunity to use our underwriting and sector expertise to be a flexible and responsive capital partner to businesses. In challenging times like we are seeing now, companies frequently require expeditious, tailored capital solutions from a value-add strategic partner that can underwrite complex situations. This is evidenced by the fact Hybrid Value and related funds have invested $900 million in debt and equity in the past week alone through the platform.”
-Matt Michelini, Senior Partner and Co-Head of Hybrid Value
“The Cimpress and Expedia investments showcase our ability to work alongside company founders, management and large stakeholders, including those of market-leading public companies, to deliver bespoke debt or equity capital solutions. Our investments allow Cimpress to obtain covenant relief under its credit facility and will help improve Expedia’s liquidity position. In both transactions, Hybrid Value’s integration with Apollo’s Private Equity business, and our ability to commit to sizeable investments in a short timeframe helped differentiate Apollo from other alternatives.”
-Rob Ruberton, Senior Partner and Co-Head of Hybrid Value
