The Pebble Group, the Manchester, U.K.-headquartered parent company of Facilisgroup and promotional products distributor Brand Addition (asi/202515), plans to list shares on the AIM market of the London Stock Exchange in an effort to raise capital to fuel growth plans and more, according to press reports out of the United Kingdom.

Launched 24 years ago, AIM is a sub-market of the London Stock Exchange. It allows smaller companies to float shares with a more flexible regulatory system than is applicable to the main market.

“A successful IPO and admission to AIM would facilitate the exit of our private equity shareholders, Elysian Capital, and the repayment of debt facilities, moving our group on to the next key stage of its journey,” said Pebble Group CEO Chris Lee, in a quote reported by Alliance News.

Chris Lee, The Pebble Group

Lee continued: “With a new capital structure and no debt, The Pebble Group will be best placed to invest more readily in expansion, deliver on its growth strategy and enable its senior managers and employees to participate in the group’s success.”

The Pebble Group could be listed on AIM by early December. Speaking to Counselor, Lee said that the group intends to raise £200 million British pounds – about $258.56 million in today’s money. Should that occur, Elysian Capital would exit The Pebble Group, and the company’s stock would be held by various institutional/long-term investors, Lee told Counselor. Under that scenario, Tom Falcon, who is chairman of The Pebble Group, would leave the group as he is a partner at Elysian, Lee said. Lee and Chuck Fandos, president of The Pebble Group, would remain with the business “and as committed as ever to an exciting future with The Pebble Group,” Lee told Counselor.

The Pebble Group could be listed on AIM by early December. Financial details on the expected stock offering weren’t immediately clear. Counselor has reached out to Lee for additional insight.

Alliance News reported that Elysian Capital, a London, U.K.-based private equity firm, owns a 77% stake in The Pebble Group. In 2017, Elysian acquired a majority position in Brand Addition in a deal that was reported to be between just less than £50 million British pounds (about $64.5 million at the time) and about £60 million pounds (about $77.4 million at the time).

Brand Addition, a leading European promotional products distributor with a global presence, operates in North America through its St. Louis, MO-based Brand Addition USA, which is the former Gateway CDI. Brand Addition acquired Gateway CDI in 2016.

In November 2018, Elysian Capital acquired Facilisgroup, a St. Louis-headquartered software-as-a-service business that provides services that range from CRM and order management to consolidated buying power for promotional products distributors in North America. UK Investor Magazine reported that the acquisition cost £23.4 million – or about $30.3 million in today’s money.

At the time of the Facilis purchase, Elysian announced the formation of The Pebble Group – an entity focused on the promo industry that so far includes Facilisgroup and Brand Addition. The Pebble Group has nine offices, with locations in North America, Europe and Asia. Facilis and Brand Addition retain separate brands, growth strategies and teams. UK Investor reported that The Pebble Group’s 2018 revenue was £93 million ($120.56 million) – a tally that would have risen to £99.8 million ($129.4 million) if there had been a full contribution from Facilisgroup. Before transaction and reorganization costs, underlying profit for 2018 was reportedly £5.39 million – nearly $7 million.

Chris Lee placed 34th on Counselor’s 2019 Power 50, the definitive ranking of the most influential people in the promotional products industry. Counselor recently interviewed Lee in a podcast.