MML's Arena Group acquires Karl's

Carmen Reichman
05 April 2013

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UK-based events business The Arena Group, a portfolio company of MML Capital Partners, has acquired its US competitor Karlтs Event Services.

Arena's acquisition of Karl's, which saw MML invest £5m in fresh funding, will enable the business to branch out into the US market. The company already expanded into the Middle East by acquiring Dubai-based Harlequin as part of its original expansion funding from MML.

MML, which specialises in helping companies expand internationally, sourced the deal on a proprietary basis. The GP's other transatlantic deals include MEDEX, which was bought by Exploration Logistics and the burs business of SGS Tools, which was acquired by the ATA Group.

MML invested £15m in Arena in February 2012 alongside SIP, which contributed £1.5m. Arena is a provider of temporary structures, seating, design and overlay services to support delivery of live events. The business operates from multiple locations in the UK, the United Arab Emirates (Dubai), Singapore, Malaysia, Portugal, Spain and now the US. Events Arena has supported include the London Olympics, the Wimbledon tournament, and Abu Dhabi's F1 Grand Prix.

Following the merger, Arena Group will have a combined turnover of £80m and employ a total of 660 staff across the UK, US and Middle East.

Debt
Senior debt to support the transaction was provided locally by the company's US banks.

Company
Karl's Event Services is a supplier of temporary structures, staging, lighting and furniture to clients in the events business. The company is headquartered in Milwaukee and has operational bases in New Jersey, Orlando and Fort Irwin, California.

Karl's was founded in 1966 and has 330 employees. The business's latest turnover figure was $40m. Clients include the NFL Super Bowl, Mercedes Benz, New York Fashion Week, as well as PGA Tour and NASCAR events.

People
Bal Johal is managing partner at MML and a board member at Arena.

Advisers
Acquirer -MML, Bal Johal, Luke Jones (Corporate finance); PwC, James Tubby (Financial due diligence); PwC, Kevin Morris (Tax, structuring); Pinsent Masons, Ed Stead (Legal); Winston & Straw, Chris Ferazzi (Legal).