Northgate backs Mexican family entertainment centers operator Grupo Diniz

Northgate Capital has acquired a 49 percent stake in Grupo Diniz. No financial terms were disclosed. Grupo Diniz operates 40 family entertainment centers in Mexico.

PRESS RELEASE

0n July 24, 2015, Northgate Capital completed the acquisition of a 49% stake in Grupo Diniz, the leading Family Entertainment company in Mexico. Grupo Diniz operates 40 family entertainment centers throughout shopping malls in Mexico under the Recórcholis brand. Each center offers multiple entertainment attractions under one single roof including: kids rides, toddler playing areas, skill games, surrender games, simulators, bowling, video games and ice rinks.

Northgate’s participation in Grupo Diniz will support the company’s growth through an expansion plan that includes more than 30 new entertainment center openings during the next five years, as well as the development of initiatives focused on increasing company’s position in the country.

“We definitely believe our partnership with Northgate will give the company the support and strength required to continue growing aggressively in the years to come,” said Antonio Quevedo Diniz, founder and CEO of Grupo Diniz. “It’s very important for us to have a global partner with local expertise. We are pleased to partner with Northgate Capital with whom we share a vision of leadership, success and sustained growth.”

“There is great opportunity for expansion in the entertainment industry in Mexico. The country’s current offering, together with the large amount of projects for new shopping centers, provide attractive market conditions for the expansion of the company, not only in Mexico City’s metropolitan area, but also in regions where the company does not have presence yet,” said Gabriel Mizrahi, principal at Northgate Capital.

“We are excited to work closely with Grupo Diniz’s management team, both in the execution of its current business model and in the development of new projects, which will allow the company to grow significantly in the medium term, said Guillermo Carmona,” investment manager at Northgate Capital.

“We are very pleased about our partnership with Grupo Diniz, through which we will be able to build a success story in the following years.”

About Grupo Diniz (Recórcholis!)
Founded in 1988, Grupo Diniz is the leading company in Family Entertainment Centers sector in Mexico.

The company currently operates 40 centers, from which its most recent openings are Plaza Centella and Parque El Toreo in the Mexico City’s metropolitan area, along with Nuevo Veracruz and Merida Americas.

For the remaining of 2015, two additional openings are scheduled in the Mexico City metropolitan area: Coacalco Cosmopol and Carso Tlalnepantla. For more information visit www.recorcholis.com.mx.

About Northgate Capital
Founded in 2001, Northgate Capital is a global private equity fund manager with more than five billion dollars in committed capital. With offices in seven countries, Northgate has built a platform of more than 35 investment professionals in Europe, North America, Latin America and Asia. For more information visit www.northgate.com.