Providence picks up Exponent's Ambassador

Alice Murray
22 October 2013

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Providence Equity Partners has emerged as the successful bidder for Exponent Private Equityтs Ambassador Theatre Group (ATG).

Following the deal, Exponent has retained a minority stake in the company and will continue to work with management. Furthermore, Greg Dyke will stay on as chairman.

Providence will support ATG's plans to expand internationally.

The deal value has not been disclosed – however, it is reported to be in the region of £350m.

It was reported earlier this month that the group had attracted several private equity suitors, including BC Partners, Blackstone, Carlyle, Charterhouse, Lion Capital and Permira.

Previous funding
ATG was established through Exponent's simultaneous acquisition of Ambassador Theatre Group and the theatre portfolio of US corporate Live Nation in November 2009. The deal was valued at £150m.

Company
ATG is a UK-based owner and operator of theatres. It operates 12 venues in the West End of London and a further 28 sites regionally. The company also operates a ticketing service – ATG Tickets – issuing more than 10 million tickets each year.

The group was founded in 1992 by Sir Howard Partner and Rosemary Squire. ATG's impressive profits saw it listed in the Sunday Times Profit Track 100 in 2013. Coming in sixth place, just behind Terra Firma-backed Garden Centre Group, ATG has generated 129.62% annual profit growth, with its latest profit recorded at £17.2m.

The company's productions include Macbeth starring James McAvoy, The Pride starring Hayley Atwell and Mathew Horne, as well as Dolly Parton's 9 to 5 The Musical, Priscilla Queen of the Desert, Legally Blonde the Musical, Monty Python's Spamalot, The Rocky Horror Show, Ghost the Musical, and West Side Story.

People
Sir Howard Partner and Rosemary Squire are joint CEOs of ATG. Greg Dyke is chairman of ATG. Andrew Tisdale is managing director at Providence.

Advisers
Equity – Ingenious Corporate Finance (Corporate finance); Weil Gotshal & Manges (Legal).
Vendor – UBS Investment Bank (Financial due diligence).