HIG invests £62m in Engine

 
Steve Dinneen
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Private equity group HIG Capital will invest £62.5m in marketing firm Engine Group to help fund its expansion into the US, China and Brazil.

The investment will consist of an initial £32.5m, followed by £30m over the next two years. HIG, which recently moved into new City offices, will eventually hold a stake of around 40 per cent in the Engine.

The communications firm, which owns ad agency WCRS and PR group MHP, hopes the extra capital will help it grow exponentially as it moves into lucrative new markets.

It is thought Engine, whose clients include News International and BSkyB, will drive its growth in these regions both organically and inorganically, with a string of acquisitions on the horizon.

Engine decided to postpone a planned IPO earlier this year due to uncertain economic conditions.

Engine chief executive Peter Scott said he hopes the new funding will help build his firm’s revenues from £59m to over £500m within five years.