Canadian private equity firm Clairvest Group has sold its portfolio company Cieslok Media Ltd, a Toronto-based outdoor advertising business, to Bell Media Inc for an undisclosed sum. Clairvest, which partnered with Jörg Cieslok in a management buyout in 2013, said it realized cash proceeds equal to 7.8 times invested capital with the deal’s closing. This could rise to 8.4 times invested capital with the resolution of certain post-closing matters, giving Clairvest an internal rate of return of 92 percent. Cieslok was Clairvest’s first platform investment in the media space. Last year, Clairvest closed a second deal in the sector with its US$20.5 million investment in Digital Media Solutions.
Clairvest Completes Sale of Cieslok Media Ltd and Realizes a Multiple of Up to 8.4 Times its Investment and IRR of 92%
Toronto, Ontario (January 3, 2017) – Clairvest Group Inc. (TSX: CVG) (“Clairvest”) today announced that it and limited partnerships controlled by it completed the sale of their common shares of Cieslok Media Ltd. (“Cieslok Media”) to Bell Media Inc. (“Bell”).
Cieslok Media is a leading Canadian out of home advertising firm, operating predominantly large format digital and static billboards throughout major cities in Canada. At closing, Clairvest realized cash proceeds equal to 7.8 times invested capital, which could increase to up to 8.4 times invested capital subject to a contingent payment related to the satisfaction of certain post-closing matters expected to be finalized during the quarter. The full proceeds would represent an internal rate of return (“IRR”) of 92% over a holding period of approximately three years.
Since Clairvest partnered with Jörg Cieslok in a management buyout in September 2013, Cieslok Media embarked upon a successful growth strategy that materially increased EBITDA in three years. During this time, Cieslok Media completed three acquisitions, organically expanded its digital sign inventory and successfully launched an integrated mobile advertising offering.
“Our partnership with Clairvest was instrumental to Cieslok Media’s success. Clairvest’s value in this transaction was crucial spanning strategic, financial and human resources impact,” commented Jörg Cieslok, CEO of Cieslok Media. “I am very proud of our company’s growth over the last three years. Thanks to the hard work of our team and Clairvest’s support we were able to transform Cieslok Media into a highly successful player in Canada.”
“The financial return on this investment is a tribute to Jörg and his outstanding management team,” said Mitch Green, Managing Director at Clairvest. “When we partnered with Jörg to re-establish Cieslok Media as a standalone business, we believed in the opportunity to create a winning team. Jörg and his organization surpassed our expectations thanks to their innovation and commitment to best in class service. We are proud to have been part of this fantastic team,” added Mr. Green.
Peter J. Solomon Company acted as exclusive strategic and financial advisor to Cieslok and its Board of Directors in this transaction.
Clairvest Group Inc. is a private equity management firm that invests its own capital, and that of third parties through the Clairvest Equity Partners limited partnerships, in businesses that have the potential to generate superior returns. In addition to providing financing, Clairvest contributes strategic expertise and execution ability to support the growth and development of its investee partners. Clairvest realizes value through investment returns and the eventual disposition of its investments.
Director, Investor Relations and Marketing
Clairvest Group Inc.
Tel: (416) 925-9270
Fax: (416) 925-5753
Photo courtesy of Cieslok Media Ltd