3i acquires 40% of Boomerang TV to develop ambitious growth plan
3i, a world leader in private equity and venture capital, has sealed an agreement to purchase 40% of the Boomerang TV group, an independent producer of audiovisual content specialised in the creation of new entertainment and fiction formulas for television.
The deal, valued at €36.4 million, has been structured as a combined share purchase and capital increase to support the company’s ambitious growth plan, which calls for tripling its size over the next five years.
Under the terms of the agreement, 60% of the shares, as well as the day-today running of the company, will remain in the hands of the founding partners, who also manage the firm: Pedro Ricote, Pepe Abril, José Manuel Lorenzo, Enrique Cerezo and Juan José Díaz.
Boomerang TV, which has been valued at €91 million, is currently one of the flagship producers in the Spanish audiovisual market. Founded in 1998, the company focuses on the production of television programmes for both nationwide broadcasters and stations from autonomous regions.
Pedro Ricote, CEO of Boomerang TV, expressed his satisfaction with the qualitative leap facilitated by the deal: “The agreement with 3i turns Boomerang into a major player in the Spanish audiovisual sector, well beyond its original scope as a producer.” Ricote highlighted the fact that the entire process was marked by an excellent relationship with 3i: “From the very first, we have been speaking the same language and we have fully understood the role that each of us has to play in this project.”
3i has a 50 years track-record as an investor in media companies thanks to over 35 deals undertaken in this sector worldwide. The list includes Sparrowhawk Media (a pay-per-view TV company) in the UK, Boxer (a digital TV broadcaster) in Sweden and Nimbus Communications (an independent media and entertainment group) in India.
3i will support the management team to develop the expansion plan and contribute value through the expertise of its London media team and its vast array of international contacts.
According to 3i Spain Managing Director Maite Ballester, “what most impressed us about Boomerang TV is the fact that it is a leading independent producer with a stellar track-record and a significant ability to respond to market demand. Furthermore, the content market is a sector which we know well and which still has room for growth in Spain. We plan to help grow Boomerang through acquisitions and to secure its greater penetration into digital television. ”
3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital, Venture Capital, Infrastructure and Quoted Private Equity (“QPE”) and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our business relationships. These underpin the value that we deliver to our portfolio and to our shareholders.
As a European leader in private equity, 3i objective is to invest in firms with highly motivated management teams and promising projects. 3i works in tandem with the companies to generate value through strategic support, synergies with the ownership portfolios, and by sharing knowledge through its network of branches and contacts. Its activity is focused on buyouts and capital increases combining size, quality, growth opportunities and the chance to align interests.
Throughout its 60 years of experience, 3i has invested €29 billion and boasts an international network present in 14 countries across Asia, the U.S. and Europe. 3i began to operate in Spain in 1990 and since then has invested €1.4 billion from its Madrid and Barcelona branches. Some of its largest investments include deals with Gamesa Energía y Servicios, Pepe Jeans, Esmalglass, Rodman, Renta Corporación, La Sirena, Clínica Baviera, Sten and Everis.
About Boomerang TV
The Boomerang TV group consists of 14 companies and is present in Madrid and eight other autonomous communities (9 in total). In 2007, Boomerang TV Group’s had 1,300 staff on its payroll.
Since its founding, the company has produced over 5,000 hours of television and launched 70 programme formats, as well as five fiction series
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