Whitewater and IDA merge with Direct Marketing Group

The UK's largest independent direct marketing network has been created with the completion of the Leeds based full-service marketing agency, JDA's merger with The Direct Marketing Group.

London charity specialists Whitewater are also combining, in a deal which creates a 300 strong company with an annual turnover of over £45 million. The four-agency TDMG also comprises Cheltenham
charity experts, DMS. New chief executive, Martin Smith said: "Each of the companies will continue to operate under their own names under the umbrella of TDMG. They will all benefit from TDMG's centralised resources, data management, print production, media buying, PR and digital capabilities."

Barclays plc led the £9 million acquisition finance of Whitewater and JDA on behalf of DMG. Ben Andrews, Director Financial Services, said: '"The company boasts a strong management team and it is good to give them backing which would allow them to take the business strategically to another level in terms of product set and size of business.We are very pleased to be the bank of choice and look forward to further supporting this acquisitive business."

Baker Tilly acted as corporate advisers to DMG on the acquisitions. Joe Widdup led the team and said: "The acquisitions represent strategically good fits for the ongoing growth of the group. The group is now the largest independent direct marketing network in the UK. Whitewater strengthens the group's charity specialism and JDA increases the group's full service and digital capability."

Jonathan Ebsworth led the Bates Wells & Braithwaite team that acted for the vendors of Whitewater. He said: "This deal gave a well-earned reward to the Whitewater vendor shareholders for their efforts in building the Whitewater brand with a continuing interest in both TDMG and Whitewater's results. The work around the EBT and the complex completion calculations made this deal particularly interesting."

Last Cawthra Feather and Baker Tilly also advised Direct Marketing whilst Schofield Sweeney provided legal advice to JDA. Head of corporate law at Last Cawthra Feather, Susan Clark said: "We acted for The Direct Marketing Group coordinating the simultaneous acquisitions of both Whitewater and JDA, and completed the legal work in relation to the financing of the acquisitions. "