PAI acquires Euro Media Group

The deal valued Euro Media Group at 4x EBITDA, equating to an enterprise value in the region of €200m.

The transaction was made on an all-equity basis, with EMG's existing debt structure remaining in place following the deal. The company's existing debt structure comprises an asset-based loan and term loan facility secured in 2010 with Natixis, ABN Amro and BNP Paribas acting as main lead arrangers.

The acquisition marks the second investment made via PAI's new Europe VI Fund, which launched in May last year with a €3bn hard-cap and reached a first close in January on €1.4bn. Prior to the Euro Media Group purchase, PAI teamed up with Carlyle to acquire Schneider Electric's Custom Sensors & Technologies (CST) division for around $900m - this deal marked the first investment for both GPs' latest respective funds.

The company's original shareholders, Belgian firm Sofinim – the private equity unit of Ackermans & van Haaren – and Banijay Holding, will reinvest in the company alongside PAI and EMG's senior management team. Sofinim will retain its 22.5% stake in the business.

According to a source close to the situation, the deal took a long time to negotiate due to the company's complex shareholding structure - there is currently no majority shareholder of EMG.

Under PAI's majority ownership, EMG will continue its ongoing acquisitive growth strategy across Europe. The company will also look to develop new services and PAI plans on making improvements within the operational side of the business.

Company
Founded in 1983 under its previous name Euro Television, EMG is headquartered in Bry-sur-Marne, France, with additional offices in Belgium, Germany, the Netherlands, Italy, Switzerland and the UK.

The company provides services for the production and distribution of media content and claims to have provided its services for events including the recent Sochi Winter Games, the Tour de France, the Fifa World Cup and the Monaco Grand Prix.

EMG owns a large collection of studios with 90 stages and 80 mobile units.

The company acquired state-owned Société Française de Production in 2001 and followed this with the merger with Dutch company UBF Media Group in 2007, which EMG claims doubled the size of the group.

People
Thierry Drilhon is the CEO of EMG. The company was founded by Chantal Barry, Luc Geoffroy and Jean-Pierre Barry, the latter of whom is chairman of EMG's board of directors. Nicolas Holzman is a partner at PAI.

Advisers
Equity – EY (Corporate finance); Willkie Farr & Gallagher (Legal).
Company – Ricol Lasteyrie (Corporate finance); Bredin Prat (Legal).

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