Oakley Capital acquires 7NXT from Crosslantic

Founder and CEO Markan Karajica will remain in his management role and will retain a significant minority stake. The deal was originated via Oakley's relationship with Karajica, the GP said in a statement.

Oakley plans to support the company's international growth and to assist it with scaling up its business in the online fitness and health market.

The GP invested €42.6m in equity via Oakley Capital Origin Fund, to which LSE-listed vehicle Oakley Capital Investments announced a commitment of €75m in July 2020. The Origin Fund deploys equity tickets of €10-50m, focusing on businesses with enterprise values of up to €100m.

Apera arranged a unitranche facility to support the buyout, which also allows for the financing of add-ons and growth projects.

Asked about the timing of the exit, a spokesperson for Crosslantic told Unquote: "In Q4 2019, we started to prepare an exit process after a very successful year. We chose to sell to Oakley Capital as they are a reputable investor and will be a good partner for the management going forward."

Crosslantic acquired 7NXT in May 2018 from its parent company ProSiebenSat. The GP invested via Crosslantic Fund I, which held a final close in 2017, but is now investing from its second fund.

During the investment period, Crosslantic increased 7NXT's EBITDA and refined the company's structure, the spokesperson said. "During our ownership, we helped the company to institutionalise its structures and to significantly increase its EBITDA. To achieve this, we focused the business on the most profitable activities. Also, we split the company into three distinct verticals: Gymondo, the group's subscription based online fitness platform; Shape Republic, the nutritional supplement brand for fitness lovers; and Brand Solutions, the company's merchandising and licensing branch. We also laid the foundation to internationalise Gymondo and Shape Republic."

Asked about Crosslantic's current deal-making plans, the spokesperson said: "We are deal-hungry and actively looking for investment opportunities with double-digit-million equity tickets. Crosslantic invests in fast-growing businesses with sales of more than €10m throughout Europe with a focus on the DACH region."

Company
Founded in 2013 and based in Berlin, 7NXT comprises three businesses: Gymondo, an online fitness subscription platform for women; Shape Republic, a nutrition and supplements brand for fitness; and Brand Solutions, which manages the company's licensing and merchandising.

7NXT reported revenues of almost €11m in 2018, according to its financial statements, compared with almost €12.6m in 2017. Gymondo reported revenues of €7.3m in 2018 versus €5.3m in 2017.

People
Oakley Capital – Peter Dubens (managing partner); Sascha Günther (investment director).
7NXT – Markan Karajica (CEO).
Crosslantic Capital – Sascha van Holt (managing partner).
Apera – Klaus Petersen (partner).

Advisers
Vendor – GP Bullhound (corporate finance); Bub Memminger & Partner (legal).
Management – Stolzenberg Rechtsanwälte (legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Buyouts
• DACH
• Technology
• Secondary buyout
• Germany
• Oakley Capital