Advent International Buys Tinsa In Deal Valued At EUR100 Million

Advent International of Boston, Mass., completed its purchase of Tinsa. Advent International took a 94.5 percent stake in the Spanish property valuation firm. The remaining stake will be held mainly by a management team. The transaction is valued at EUR100 million.

PRESS RELEASE

Advent International, the global private equity firm, has today announced the completion of its acquisition of Tinsa, a leading Spanish property valuation firm, from its founding partners. Advent International has taken a 94.5% majority stake in the business, with the remaining capital held mainly by the management team. The transaction is valued at 100 million Euros and has been approved by the Bank of Spain.

Founded in 1985, Tinsa is a leader in property valuation, analysis and real estate advisory services. Since its inception, the company has consolidated its market position in terms of geographical scope, volume of assets appraised and specialisation. Tinsa does not broker property transactions in the market and is therefore in the advantageous position of being totally independent.

In 2010, the company expects to carry out over 240,000 valuation reports – representing a total valuation volume of more than 160 billion Euros – and forecasts a turnover of 80 million Euros. Until now, its shareholders consisted of 35 Spanish savings banks along with the Spanish Confederation of Savings Banks (CECA).

Advent International’s strategy for Tinsa will focus on increasing its domestic market share through organic growth and complementary acquisitions, whilst also expanding its international geographical reach. Tinsa currently operates in Europe through its offices in Portugal and France, as well as Spain. In the Americas, the company provides services in the US, Mexico, Argentina, Chile and Peru.

Advent’s investment in Tinsa follows its long-standing strategy of investing in high-growth sectors where Advent has a solid track record – in this case financial services – and in companies with significant growth potential, either through the growth of the industry as a whole or through the increasing market share of the company itself.

Carlos Santana, Director of Advent International in Spain, said:

“Advent International has extensive investment experience in the financial services sector and has been analysing investment opportunities in Spain for some time. We believe that Tinsa’s outstanding leadership position in the property valuation sector will enable it to continue innovating through its products and improving the quality of the service it offers clients. We are looking forward to working with the management team to increase the long-term value of Tinsa”.

Juan Díaz-Laviada, CEO of Advent International in Spain, commented:

“We are delighted to have completed this investment, which makes us majority shareholders. We intend to help Tinsa, the clear leader of the Spanish market, to consolidate its position in Spain and complete its international expansion”.

“Advent International has been successfully investing in the financial services sector for over 20 years throughout the world. During that time we have invested in more than 25 companies in a broad range of financial sub-sectors. We will be dedicating resources and experience from across our global team to Tinsa, to accelerate the company’s growth through a buy and build strategy. At Advent International we believe that this is the most appropriate strategy for the companies in which we invest that operate in fragmented industries”.

Luis Leirado, Managing Director of Tinsa, said:

“We are very pleased to welcome Advent as a financial investor and we look forward to working closely with the Advent team on the value creation plan and the development of new business opportunities in Spain and internationally”.

Advisors
Advent International was advised on this transaction by Ahorro Corporación (M&A Advisory), Uría y Menéndez (Legal, Corporate), Freshfields (Legal, Tax), Boston Consulting Group, AFI and JMF Consultoría Financiera (Sector Analysis), KPMG (Due Diligence, Financial and Technology) and Spencer Stuart (Management Assessment).

About Advent International
Founded in 1984, Advent International is one of the world’s leading global buyout firms, with offices in 17 countries on four continents. A driving force in international private equity for 26 years, Advent has built an unparalleled global platform of over 160 investment professionals across Western and Central Europe, North America, Latin America and Asia. The firm focuses on international buyouts, strategic repositioning opportunities and growth buyouts in five core sectors, working actively with management teams to drive revenue growth and earnings improvements in portfolio companies. Since inception, Advent has raised €19.4bn ($25bn) in private equity capital and, through its buyout programs, has completed over 250 transactions valued at approximately €40bn ($52bn) in 35 countries.
For more information, visit www.adventinternational.com.