Electra Scores Two Major Deals in Italy

Electra Fleming’s Italian associate B&S Electra completed two high-profile deals in late August. The group structured and led a $30 million (ecu 25 million) equity package for Media Partners, a leading international sports marketing and promotion group; the deal values the Media Partners business at $110 million. B&S Electra also led the acquisition of Guala Closures, a transaction hailed as Italy’s largest MBI this year, even though the price paid for the business was not disclosed.

The Guala buy-in was effected through Polybox, the Italian manufacturer of PET bottles and pre-forms that B&S acquired earlier this year as a platform for acquisitions in the European plastics packaging industry. Guala is the world leader in the design, production and sale of tamper-resistant closures for alcoholic drinks. Its products, which prevent counterfeiting, are supplied to major branded spirits producers worldwide, with the UK ranking as its largest market thanks to the Scotch whisky industry. Guala generated 76% of its L120 billion (ecu 62 million) sales last year in Europe and the balance in Latin America, India and China. Electra has revealed that Electra Investment Trust invested an additional L15.7 billion to support the Guala acquisition, leaving it with a fully diluted holding of 20.6% in the enlarged group.

Media Partners, whose plans to introduce a European football “super league” are currently attracting equal amounts of media coverage and controversy, is involved in the commercial management of television rights, the development of sports-related marketing and profile management of athletes and sporting institutions. It is the world leader in the management of international television rights for major ski events, and ski revenues comprise more than 50% of its earnings, which reached $45 million last year.

The $30 million investment gave Electra Fleming funds a 27% stake in Media Partners, whose seven partners retain the balance of the equity. The new capital will be used to fund the development of the super league and other projects.

Although none of the 16 European teams Media Partners is targeting for the proposed competition has yet signed up, JP Morgan has already agreed to underwrite the costs of the super league to the tune of $2 billion in the next five years.