Los Angeles, CA — LB2 Group, Ltd. (“LB2” or “Management”), has acquired Ketchum Directory Advertising, Inc. (“KDA”), in a management buyout of the fifth largest Yellow Pages agency in the U.S., from Omnicom Group (“OMC”). FocalPoint Securities, LLC (“FocalPoint”) served as exclusive financial advisor to LB2.
LB2 was formed in 2006 for the purpose of building an advertising agency that would be more responsive to the changing trends in media. From its headquarters in Los Angeles, Management began to develop a global Yellow Pages media planning service targeting businesses in Europe. KDA, formerly a wholly-owned subsidiary of OMC, is LB2’s first acquisition. FocalPoint advised Management on its negotiations with OMC, and was tasked with securing financing for the transaction. Despite the recent disruptions in the credit markets, FocalPoint was able to structure a transaction that allowed Management to fund the purchase through debt financing.
“It was a challenging process, and we were delighted to have FocalPoint by our side.” said Nicholas Barran, CFO and owner of LB2. “Their expertise and knowledge of the credit markets, coupled with their deep lender relationships, allowed us to confront the challenges presented by our unique capital structure early on, properly vetting lending institutions and identifying the appropriate partner to fit our specific needs.”
Rajesh Sood, a Managing Director at FocalPoint, added, “LB2 boasts an extremely qualified management team. They demonstrated a high level of credibility as to the rationale for the acquisition that allowed financing sources to achieve comfort with the capital structure.”
About LB2 / KDA
LB2 will provide new senior leadership within KDA. KDA is currently a leading advertising agency specializing in directive media, defined as media used by consumers who are in an active purchase mode, including print and online yellow pages and search marketing. KDA works with a select roster of blue chip clients to leverage the power of their brands at the moment consumer purchasing decisions are made. KDA is headquartered in Kansas City, with offices in Denver, Los Angeles, Louisville and Pittsburgh. For more information on KDA, please visit www.kda.com
About FocalPoint
FocalPoint is an independent investment bank, specializing in mergers and acquisitions, private placements (both debt and equity), financial restructurings and distressed transactions. The firm serves middle market clients throughout the U.S.
Please contact Rajesh Sood at 310-405-7000 with any questions about this transaction.