General Atlantic acquires Argus in £1bn deal

Kenny Wastell
24 May 2016

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US-headquartered GP General Atlantic has acquired London-based energy price reporting and information business Argus Media in a deal worth around ТЃ1bn EV.

Argus chair Adrian Binks will retain a significant minority stake as part of the deal, which values the company at more than 20x EBITDA.

The family of Argus's founder, Jan Nasmyth, will sell its stake, while employee shareholders will have an option to reinvest.

On completion of the deal, Argus will invest in international expansion and product development. The business has been an active acquirer since inception, bolting on niche assets, often in less liquid commodity classes than its core oil and gas remit.

General Atlantic managing directors John Bernstein and Gabriel Caillaux will take a seat on the Argus board.

Earlier this year, the company appointed Bank of America Merrill Lynch to advise on a possible sale, with the development sparking intense interest among strategic and financial acquirers.

In April, Sky News reported that asset manager and mezzanine provider Intermediate Capital Group had entered the fray to acquire Argus. The broadcaster also named Charterhouse, the Canada Pension Plan, Hellman & Friedman and Permira as potential bidders.

The General Atlantic deal is subject to regulatory approval and is expected to be completed within two months.

General Atlantic has a track record of investing in media businesses. It recently sold its remaining stake in Axel Springer Digital Classifieds, a company set up to hold the digital assets of German publisher Axel Springer. It also acquired weather business MeteoGroup from the Press Association's parent group for €190m in December 2013.

Company
London-headquartered Argus was founded in 1970 to cover the Dutch and Belgian petroleum products markets. It has since broadened its remit to encompass global commodity price reporting and information.

Argus has a headcount of 750 across 21 offices and publishes 160 titles. In the year ending June 2015, it generated a turnover of £124.4m with EBITDA of £37.6m, according to reports filed with Companies House.

People
General Atlantic – Gabriel Caillaux, John Bernstein (managing directors).
Argus Media – Adrian Binks (chairperson); Neil Bradford (chief executive).