In a €115m carve-out, US private equity firm Providence Equity Partners has acquired the Baltic assets of listed Swedish broadcasting group MTG.
The disposal of MTG's TV, digital and radio business in the Baltic countries to Providence values 100% of the carved-out company at €115m, or 12x 2016 EBITDA.
Providence made its first foray into the Baltic broadcasting and telecommunications sector last year with the secondary buyout of mobile network operator Bité from Mid Europa, in one of the largest private equity transactions in central and eastern Europe in 2016.
The GP will take control of MTG's assets in Latvia, Estonia and Lithuania, subject to regulatory approvals. MTG's sale forms part of a refocusing effort within the group; proceeds from the transaction will be plowed into the company's transformation.
MTG is a broadcasting business providing free and paid TV services, digital entertainment and radio.
The group operates 11 television channels across the three Baltic countries and claims to have a combined 48.6% commercial share of viewing in the region. Additionally, MTG Baltics has subscription and advertising-funded video streaming services, commercial radio stations and online advertising consultancy services, among other assets.
The Baltic operations of MTG recorded SEK 1bn in revenues and SEK 91m in EBIT in 2016, according to MTG's financial statements.
Providence Equity Partners – Karim Tabet, Robert Sudo (managing directors).
MTG – Jørgen Madsen Lindemann (CEO).
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Heikki Westerlund had taken up his position in 2013 and will stay on until a replacement is appointed
GP sold around 70% of the UK-based teleradiology business after a four-year tenure