iC Group - In The News
Income fund buys stake in city promotions business
August 2006 - Winnipeg Free PressBy Murray McNeill
A Winnipeg firm that designs and manages promotional contests on behalf of large corporate clients expects to double its sales this year after finding a new partner to provide it with the financial resources it needs to handle that kind of rapid growth.
IC Group Inc. and Toronto-based Newport Partners Income Fund have announced that Newport has acquired an 80 per cent stake in IC Group for $8 million.
IC Group's senior executive team, headed by company founder and president Todd Pluchinske and executive vice-president Duncan McCready, retains the remaining 20 per cent interest in the company.
Pluchinske said the promotional-solutions side of the business -- IC Group also has an insurance division that arranges insurance coverage for promotional contests and bonus programs -- has nearly quadrupled in size in the first half of this year. The insurance side, meanwhile, is growing at a pace of 20 to 30 per cent a year.
Pluchinske noted IC Group is quite dependent upon technology, so it needs to acquire more equipment and more workers in order to handle that kind of rapid growth in business volumes. He also noted it was finding it increasingly difficult to do that on its own.
"Partnering with Newport is an excellent fit of our company. We are growing rapidly, and with the support of a strong financial partner like Newport behind us, we are very excited about the growth opportunities we see in front of us."
He said that with its newfound financial strength, IC Group should be able to double its sales this year -- it had revenues of $8.2 million in 2005 -- and add more workers to its current staff of 65. Exactly how many more hasn't been determined, he added.
Newport president and CEO Peter Wallace said in a written statement that IC Group is also an excellent fit for Newport, which now has 14 "highly successful" businesses in its investment portfolio.
"As a leading provider in a niche market, with a history of profitable growth and no debt, IC Group meets our investment criteria. It also represents a strategic investment within our marketing segment."
Founded in 1989, IC Group has grown to become a leading designer and manager of interactive promotions, games, contests and sweepstakes.
It also provides risk management services and insurance coverage for promotional contests and corporate bonus programs.
The company's clients include more than 150 Fortune 100 companies and promotion agencies in 26 countries. Although headquartered in Winnipeg, the firm also has offices in Toronto, Chicago, Los Angeles, and London, England.
Pluchinske said although the insurance division is the oldest part of the company's business, it's the technology division, which designs and manages promotional games and contests, that is seeing the most rapid growth in recent years.
He attributed that in part to a growing trend toward more and more companies using promotional games and contests as a means of attracting and retaining customers. These contests also enable them to acquire useful information about their customers, which they can use in developing effective advertising and marketing initiatives, he added.
murray.mcneill@freepress.mb.ca
About iC Group – www.icgroupinc.com
iC Group is a leading provider of interactive sweepstakes, games, contests, promotion risk management and insurance solutions. They are a trusted partner in the design and implementation of secure, high-impact promotions for many of the world’s top brands and leading promotion agencies. Clients rely on them to deliver promotions that create immediate impact and drive measurable results, while minimizing promotion risks that can jeopardize the bottom line.
Contact:
Julia Bilous,
Director Communications
iC Group
(800) 575-5590
1.800.575.5590 