Business Description:
ACCC Acquisition , LLC currently owns the majority of the stock in ThinkDirect Marketing Group, Inc.

ThinkDirect Marketing Group, Inc. (“TDMG”, or the “Company”), based in Largo, FL, is an $81 million independent direct marketer of consumer products and services. Through its National Magazine Exchange division, TDMG sells products and services (mainly magazines) via inbound calls that are generated from direct mail. The Company’s National Publisher’s Exchange division facilitates and executes magazine orders on behalf of smaller magazine agents by leveraging the Company’s existing infrastructure and relationship with publishers. The Company has over 600 employees.

Transaction Background:
Special Data Processing Corporation (“SDP”) was founded in 1984. Following poor financial performance, SDP defaulted on its bank loan and TDMG was then able to purchase the debt and subsequently foreclose on SDP.

Investment Thesis:
Being one of the largest clearing houses, TDMG has longstanding partner relations with all major magazine publishers, and possesses state-of-the-art infrastructure. The Company is concentrating on profitable sales, which, coupled with disciplined fiscal policies and flattening of its organizational chart should allow TDMG to boost its profitability drastically. Moreover, being a partner of choice for many publishers, TDMG is well positioned to capitalize on current industry dynamics: increasing pressure on publishers from advertisers and publishers ever-growing need to boost their circulation and subscription metrics.