H.I.G. Capital‘s European affiliate, H.I.G. Europe, has signed the first deal out of its Madrid office, which was opened earlier this year. The firm has reached a definitive agreement to acquire 49.99% of the capital of Vértice 360 Servicios Audiovisuales for a total of 16 million Euros ($20.7 million).
H.I.G. Capital, a leading global private equity investment firm with more than €10 billion of equity capital under management, has announced that its European affiliate, H.I.G. Europe, has signed the first deal out of its Madrid office, which was opened earlier this year. The firm has reached a definitive agreement to acquire shares representing 49.99% of the capital of Vértice 360 Servicios Audiovisuales – until now fully owned by Vértice 360 – for a total of 16 million Euros. The investment will take place through a capital increase, following which the remaining 50.01% of the company’s capital will continue to be held by Vértice 360.
VSA is part of Vértice 360, one of the main audiovisual groups in the Spanish-speaking market, which has been listed on the Spanish Stock Exchange since December 2007. Vértice 360 is a leader in providing comprehensive technical services and equipment for audiovisual production and advertising, broadcasting television channels and live events, organising live entertainment and developing applications and solutions for entertainment, as well as in content production and post-production.
It has also been agreed that Vértice 360 will receive an additional two million Euros through the distribution of VSA’s available reserves, payable on the closing date for the deal set out in the contract through the cancellation of part of the debt currently held by Vértice 360 with VSA. Vértice 360 may also receive an additional two million Euros through the distribution of available VSA reserves subject to the achievement of a series of targets set out in the contract for the years 2012 and 2013.
Jaime Bergel, Managing Director of H.I.G. Europe in Spain, said: “We are very pleased with this investment, which makes us a main shareholder in VSA. We look forward to working with Vértice 360 to help VSA continue to develop its business, achieving growth based on solid fundamentals.”
“VSA is H.I.G. Capital’s first investment since we opened our Madrid office earlier this year, with the clear objective of investing in leading Spanish businesses. In today’s uncertain market, H.I.G. believes that the Spanish economy offers opportunities, particularly the dynamic, midmarket companies which are set to lead the country’s recovery.”
Manuel García-Durán, Executive President and CEO of Vértice 360, said: “This transaction reflects Vértice 360’s strategy to increase its financial capacity in order to advance its operations in the outsourcing and privatisation of state-run TV stations.”
“We are delighted to be able to embark upon this new phase at our company alongside H.I.G. Capital, one of the largest, most prestigious funds in the world, which will allow us to better serve our clients, establish new relationships, and further develop our business to its full potential.”
H.I.G. Europe, has already undertaken various investments in Spain, such as Núter and Bodybell, and has completed 22 transactions in Europe since the beginning of 2011.
About H.I.G. Capital
Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York, and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Paris, Madrid and Rio de Janeiro, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 50 companies with combined revenues in excess of $8 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.
About Vértice 360º
Vértice 360º is an audiovisual group which specialises in content production and post-production of all kinds (cinema, television and new interactive platforms), providing comprehensive technical services and equipment for audiovisual production and advertising, broadcasting television channels and live events, organising live entertainment and developing applications and solutions for entertainment. Grupo Vértice 360º has been listed on the Stock Exchange since December 2007. It comprises audiovisual companies such as Telson, Videoreport, Apuntolapospo, Acicala, Videac, Vértice Estudio, Inevent and Itesa, as well as content providers such as Vértice Cine, Telespan, Notro TV, CinTV and Vértice Sales.
MHP is a trading division of Engine Partners UK LLP, a limited liability partnership registered in England & Wales with registered number OC365812. Our registered office is at 60 Great Portland Street, London W1W 7RT, United Kingdom. A list of our members is open for inspection at our registered office.