Arle's Parques Reunidos valued at €1.25bn in Madrid IPO

Amedeo Goria
29 April 2016

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Buyout house Arle Capital Partners has partially exited Spanish leisure park operator Parques Reunidos as it listed in Madrid with a €1.25bn market cap.

The company raised €525m from the offering of new shares, and another €75m through the sale of existing shares belonging to current shareholders, including Arle. The offering generated €34.4m in proceeds for Arle, which sold 7.7% of its shares.

The share price was set at 155 cents, at the bottom-end of the estimated 155-205 cents range, valuing the company as a whole at €1.25bn.

Following the transaction, the GP retained 33.9% of ordinary shares. According to press reports, the unrealised stake is valued at €423.9m. Arle agreed to enter a lock-up period of 180 days.

According to a statement, the net proceeds from the issuance of new shares will allow the company to repay its existing debt by arranging two new term-loan facilities and a new multi-currency revolving facility. Moreover, the flotation will provide the company with fresh capital to bolster its organic growth and proceed with further strategic acquisitions. Currently, the business has two attraction parks under construction in the United Arab Emirates.

Morgan Stanley International and Deutsche Bank acted as joint global coordinators and joint bookrunners. Banco Santander, Barclays and BNP Paribas acted as additional joint bookrunners. Banca IMI, BBVA, Banco Sabadell and Caixabank acted as co-lead managers.

Prior to the offering, the family office Corporación Alba acquired an 8% stake for €100m.

Previous funding
In 1994, an investors' syndicate led by Apax, Baird Capital, Cinven, N+1, Permira and Vista Capital backed the €28.4m MBO of the business. Subsequently, the investors exited the business through an IPO in May 1999.

Advent International acquired the business in December 2003 through a €173m take-private.

In 2007, Arle – formerly known as Candover – acquired a majority stake in the company through a €930m SBO and expanded the business in Europe and the US.

Company
Founded in 1967, Parques Reunidos is a leisure parks operator based in Madrid. The company manages 55 theme parks across 12 countries and employs 18,000 people.

In 2015, the business generated a turnover of €605.5m and EBITDA of €194.8m.

People
Arle – Javier Abad (partner).