HH Global sales to top $2bn with Adare buy
Tuesday, June 22, 2021
HH Global has sealed another mega takeover deal with the acquisition of Adare International.
The move, confirmed today (22 June), comes nine months after HH’s takeover of its larger rival InnerWorkings was completed and could see HH Global overtake Paragon Group as the UK’s biggest print business.
Adare International was owned by private equity house Endless. It has been separated from secure and transactional print sister company Adare SEC since Adare Group was dissolved in 2017.
Basingstoke-headquartered Adare International had shown strong growth in the intervening years, with sales up 22.4% in its most recent results, for 2019, at £234.26m. At the time the firm had 686 staff.
It turned around the prior year’s operating loss of £1.64m after exceptional costs to post a small operating profit of £119,000. Adjusted EBITDA was £2.96m (2018: £2.62m).
Adare International’s services span print management, digital content, logistics and point-of-sale.
HH said the combined worldwide business would have more than 4,000 employees across more than 50 countries, “generating approximately $2.1bn in annual sales as HH Global consolidates our leading position in the sector”.
The terms of the deal were not disclosed and it is subject to completion terms and legal processes that are expected to take up to 12 weeks.
HH said the fundamental rationale was the strategic fit, in that the businesses are “tremendously complementary”, and it would expand the group’s global reach in Europe and Latin America.
In a statement, HH said: “It’s worth noting that Adare’s choice of HH Global as acquirer is a reflection of our reputation and status.”
Mike Perez, group CEO at HH Global said he was delighted at the coming together of the two businesses.
“We’re excited about the potential of our combined company. This comes because we’ll have increased geographical coverage, extended service lines, and enhanced purchasing power – and most critically because we’re bringing the best people in the industry together,” he said.
“We are very much looking forward to welcoming Adare’s clients and people to HH Global once the acquisition closes”.
Adare International CEO Andrew Dutton said the move would help to accelerate HH’s growth.
“It is an incredible milestone for Adare and a testament to the outstanding team we have assembled and the rapidly growing client portfolio we have created. Our combination will provide our customers with enhanced services and our teams with expanded career opportunities. We are looking forward to working with our new colleagues as we begin the transition to deal completion.”
Adare works for a raft of blue-chip clients including Nestlé, Lidl, Pfizer, Hilton Hotels, Deliveroo, Wetherspoon, Coca-Cola and Carlsberg.
Investment house Blackstone made a £100m investment in HH Global in 2019 to support the group's growth plans.
The move will combine two of the top ten companies in the new Printweek Top 500.