Providence acquires HSE24 from AXA PE

Carmen Reichman
11 July 2012

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Providence Equity has acquired Germany-based international home shopping group Home Shopping Europe (HSE24) from AXA Private Equity for an estimated €650m.

Providence took a majority stake in the business, leaving 15% of shares to AXA PE and a significant stake to management.

Debt
The transaction is said to have been financed with a €265m debt structure.

Previous funding
AXA PE acquired HSE24 for €180m in an all-equity transaction from insolvent Arcandor Group in 2009. The GP later refinanced the business with a UniCredit-led €115m debt package.

Under AXA PE's ownership, the company's net sales grew by 10% per annum. It increased its multi-channel offering, gained market share in its home market and expanded into Italy, according to the GP. The business also acquired a stake in Russian TV shopping channel Shopping Live.

Company
HSE24 was founded in 1995. It offers a 24-hour programme, which is recorded in studios in Ismaning near Munich, where the company is located. Via the channel, the business sells products from various categories by mail-order. It currently operates in the DACH region, Russia and Italy.

The company employs 700 people and an additional 2,000 people in call centres and logistics. Net turnover in 2011 stood at €470m - a €118m increase on the 2008 figure.

People
Managing director Caspar von Meibom led the deal for the AXA PE. He will continue to represent the GP on the company's advisory board.

Advisers
Equity – Willkie Farr & Gallagher (Legal); Ernst & Young (Tax); PricewaterhouseCoopers (Financial due diligence).