The Stationery Office Group Limited (TSO) comprised the printing, publishing, document management and office supplies businesses of H.M.S.O. which were privatised in September 1996.

The Group turned over ~£286m and made operating profits of £13.1m in 1997.

In April 1999, TSO completed a highly complex demerger, which resulted in four new companies being owned directly by TSO’s existing shareholders led by Electra Fleming.

At the same time:

  • new senior debt and working capital facilities totalling £65M were negotiated with Bank of Scotland to replace the mezzanine debt and shareholder loan stock put in place at privatisation ; and
  • A Scottish property was sold to the Post Office for £6.5m

A second phase, completed in June 1999, involved three of the new companies redeeming their preference shares.

Subsequently all four of the businesses have been sold, realising substantial gains for investors

James Haddock was responsible to the Group FD for the overall project management of the demerger including acting as the principal point of contact for the professional advisers. Another manager was responsible for coordinating the four vendor due diligence exercises and identifying and negotiating the most appropriate debt structure.