Varesvuo Partners Oy (Finland) - Jan 2008

unquote
01 January 2008

Tweet
Facebook
LinkedIn
Google plus
Send to

CapMan Buyout Fund VIII, together with Roope Lerthinen and the company’s management, have completed a management buyout of Varesvuo Partners Oy, a Finnish television content and film production business for €11m enterprise value. It was acquired from OMX Nordic Exchange Helsinki listed Talentum. The deal covers all companies belonging to Talentum’s TV business with the exception of Oy Filmiteollisuus Fine Ab. The investor directly approached Talentum when it was announced that it was divesting non-core business segments in a proprietary deal process. CapMan was attracted to the deal because of the consolidation opportunities in the media sector. This is a buy-and-build transaction for the GP, and the investment will be used to strengthen its position as an independent company. Growth will be secured by building a substantial independent production company by expanding product offering and geographical reach, mainly in the Nordic region, but also in Russia and Eastern Europe. Further investments will be made to develop web-enabled applications around TV programmes to extend the product offering. A newco will be established, but at the time of going to press the new name has not been published. The transaction is subject to local competition authorities.

Debt structure

A senior debt package was supplied by Nordea to support the MBO.

Company

Varesvuo Partners is a group of Finnish TV commercial production companies, including Moskito Television Oy, Woodpecker Film Oy, Kaivopuston Grillfilmi Oy, Angel Films and classical music record label Ondine Oy. Talentum aquired 47.5% of the group in 1997, and the remaining balance in 2002 and 2005. The net sales of the TV content production totalled €12.1m in January-September 2007. The operating profit was €0.5m in the same period. It has 74 employees and is headquartered in Helsinki.

People

Olli Liitola, senior partner, was involved in the transaction and will take a seat on the board of directors together with CapMan senior partner Ari Tolppanen. Roope Lehtinen is the CEO of Moskito Television and the new company’s incoming CEO.

Advisers

Equity - Borenius Kemppinen, (Legal)Equity - Ernst & Young, (Financial Due Diligence)

Sourced from: Nordic unquote" 70 (Feb 2008)