Bruin Sports Capital announces strategic partnership with CVC Capital Partners and the Jordan Company
Deal gives Bruin access to billions in capital, plus a global network of resources from the partners
Bruin Sports Capital (Bruin), the privately held global investing, operating and holding company today announced a wide-ranging, long-term strategic partnership with renowned private equity firms CVC Capital Partners (CVC) and The Jordan Company (TJC), to build best-in-class sports and entertainment companies. The deal gives Bruin access to billions in capital, plus a global network of resources from the partners beginning with an initial combined investment for $600 million from CVC Fund VII and TJC’s Resolute Fund IV.
“We are extremely proud to have the partnership and support of CVC Capital Partners and The Jordan Company, not only for what it says about our progress but also what it means for our businesses and future opportunities,” said George Pyne. “To be able to say to a partner that on top of our track record and user-friendly model, we can tap into all the capital and global resources necessary to accelerate their business is quite powerful. This begins the next chapter for Bruin, on an even much bigger and more global scale.”
Founded in 2015 by George Pyne, Bruin invests in, acquires, and builds leading-edge, global sports and entertainment companies. It supports owners and CEOs to achieve the full potential for their assets, bringing its resources and capabilities, backed by decades of experience in transforming businesses in a variety of sports and entertainment segments worldwide. The new partnership builds on this as Bruin can access the deep capital and resources of CVC, a leading global private equity firm with 24 offices around the globe and TJC, a US middle-market private equity firm with 37 years of experience managing funds invested in a wide range of industries.
Today, Bruin companies operate across five continents and engage billions of consumers. They include Deltatre, the industry leader in media technology products and services, On Location Experiences, a joint venture with the NFL to deliver premium sports and entertainment experiences and services to more than 1,000 events per year, Engine Shop, a leading sports and entertainment marketing agency that produces thousands of brand experiences annually, Soulsight, an award-winning brand strategy and design agency that leads product innovation for dozens of Fortune 100 brands and OverTier, which operates direct-to-consumer premium streaming services worldwide.
“George and his team have built an impressive franchise, and we are delighted to be partnering with them to invest in and develop high-growth, high-performing global sports and entertainment companies,” said Chris Stadler, Managing Partner at CVC Capital Partners. “Our extensive European network and deep experience in sports, media, and entertainment ideally complement Bruin’s impressive existing platform.”
“We are excited to partner with George, an extremely talented leader with an exceptional track record of business transformation, that continues with Bruin Sports Capital,” said Rich Caputo, Chief Executive Partner of The Jordan Company. “In a sector undergoing fundamental shifts to the way it does business, he and the team have demonstrated a unique ability to uncover potential and turn it into significant value. We are going to provide the full gamut of our resources to Bruin and the partnership, and we look forward to great things ahead.”
Hackman Capital Partners Acquires Film and TV Studio Production Services Platform The MBS Group from The Carlyle Group for $650 Million
Washington and Los Angeles – Hackman Capital Partners announced today that it has acquired, through an affiliated entity, The MBS Group (“MBS” or the “Company”), a film and TV studio real estate and production services platform, for $650 million from global investment firm The Carlyle Group (NASDAQ: CG).
MBS operates two separate, yet complementary businesses: MBS Media Campus and MBS Services. MBS Media Campus, or Manhattan Beach Studios as it is commonly known, is a 22-acre, 587,000 square foot, state-of-the-art studio production facility located in Manhattan Beach, California. Hackman Capital Partners acquired the real estate asset in a joint-venture with an investment partnership led by Square Mile Capital Management. MBS Services is a multi-national, studio-based, best-in-class production services and infrastructure business with a network of more than 35 partner studios including approximately 259 stages across the top TV and film production markets globally. Together, MBS Services provides the resources and infrastructure necessary for content production, consultation services, development, management and operational oversight. The Company’s customer base includes major media and digital content producers as well as best-in-class studio real estate owners with locations in the world’s top production markets.
Michael Hackman, CEO of Hackman Capital Partners, said, “The MBS Group has become the premier platform for content producers around the world and we are thrilled to add the MBS Media Campus to our growing portfolio of studio and media assets. As competition for content continues to increase, we see tremendous opportunities to grow this real estate platform globally with MBS’s experienced and first-rate management team.”
Edward Samek, Managing Director at Carlyle, said, “We are proud of MBS’s evolution over the past 12 years, having built from scratch the services business and expanded the platform both organically and inorganically to create a network of top studios globally. MBS is well-positioned for continued growth, and we are confident they have a bright future ahead. We are pleased to transition this operating business to the Hackman Capital Partners team who have continued to demonstrate extraordinary stewardship of these iconic media assets.”
Richard Nelson, President and CEO of MBS, said, “Ed and the Carlyle team have been exceptional partners for over a decade. Leveraging Carlyle’s global platform, operational expertise and resources, we created and launched an innovative business that expanded from a single location in Los Angeles to become a multi-national provider of services and high-tech solutions for media and entertainment companies. We look forward to partnering with the Hackman Capital Partners team as we continue to grow our platform of providing best-in-class service to the world’s top content creators.”
Carlyle’s US real estate arm, Carlyle Realty Partners, acquired MBS Media Campus from Oaktree Capital Management in 2007. Carlyle transitioned the studio from a third-party managed real estate asset to a full-service, “one-stop-shop” TV and feature film production studio led by a hand-selected, in-house management team. Building on the success of its approach to production services at the Manhattan Beach facility, the Company launched MBS Services to expand with its growing roster of blue-chip customers. Since its inception in 2013, MBS has evolved from a single location in Los Angeles, to become a global market leader, with a physical studio network across ten states in the U.S., and multiple locations across Canada and the U.K. including many of the worlds’ most iconic film studios.
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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across four business segments: Corporate Private Equity, Real Assets, Global Credit and Investment Solutions. With $223 billion of assets under management as of June 30, 2019, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs more than 1,775 people in 33 offices across six continents.
About Hackman Capital Partners
Founded in 1986, Hackman Capital Partners is a privately-held, real-estate investment and operating company that focuses on buying, renovating and re-imaging vintage commercial, industrial, and studio properties. The company started by acquiring industrial properties throughout the U.S. having owned through affiliated entities over 400 buildings in 41 states totaling 35-plus million square feet. Recognizing the growing demand in the urban markets, Hackman Capital Partners was one of the early pioneers of converting industrial properties into creative office and media space in Southern California. Notable projects include The Culver Studios, a historic 14.3-acre television and film studio in downtown Culver City and home to Amazon Studios; Television City Studios, the iconic former CBS broadcasting facility on 25-acres in the heart of West Hollywood; 5500 West Jefferson Blvd in Los Angeles; the Beats/Apple Southern California headquarters; Westwood One Studios in Culver City and 888 Douglas, a 550,000-square-foot creative media campus conversion on 30 acres in El Segundo. Since inception, the Company has invested more than $4.0 billion in properties and is currently constructing approximately one million square feet of creative office and media-related campus space in Southern California.
About Square Mile Capital Management
Square Mile Capital Management LLC is an integrated institutional real estate and investment management firm based in New York. The firm’s opportunistic equity platform takes a value-oriented approach to its investment activities, with an emphasis on opportunities to acquire or capitalize real estate assets or enterprises that are undervalued, complex or undercapitalized. Square Mile Capital’s commercial real estate debt platform provides customized capital solutions for real estate owners and developers throughout the United States. For more information, visit www.squaremilecapital.com.
February 25, 2019
TAIT Announces Growth Equity Investment from Providence Equity Partners
LITITZ, Pa. & PROVIDENCE, R.I.–Feb 25, 2019– TAIT (formerly known as TAIT Towers), the market leader in designing, developing, and operating live event solutions for the entertainment industry, announced today an investment from funds advised by Providence Equity Partners (“Providence”), a premier private equity firm that specializes in the media, communications, education and information industries. TAIT CEO & President James “Winky” Fairorth and Chief Creative Officer Adam Davis will remain significant shareholders alongside Providence. Financial terms of the transaction were not disclosed.
Since 1978, TAIT has been a leading provider of advanced creative and engineering solutions to the live entertainment industry. TAIT is one of the only companies of scale that provides an end-to-end solution to design, construct, manufacture and operate custom-built concert touring and permanent installation experiences. TAIT has worked on 17 of the top 20 highest grossing concert tours of all time and has a diverse and iconic client base including The Rolling Stones, U2, Taylor Swift, Justin Timberlake, Disney, Universal, Cirque du Soleil and Nike.
TAIT also has a robust IP portfolio with more than 80 patents in technology and design. The company utilizes TAIT Navigator, a proprietary automation and show control platform that provides critical functionality to live productions and powers the majority of the company’s projects. The platform’s hardware and software products control machinery, lighting, audio, pyro, fountains and other special effects.
James “Winky” Fairorth, President & CEO of TAIT, said: “We are thrilled to partner with Providence to help take us through our next phase of growth. The firm has an impressive track record of investing in businesses that deliver world-class events and experiences. This growth equity investment is a testament to the breadth and depth of TAIT’s talented team and unique culture of excellence, which have advanced industry standards and exceeded client expectations for over 40 years.”
Adam Davis, Chief Creative Officer at TAIT, said: “Providence is the ideal partner to help us accelerate our growth initiatives and strengthen our market position. We are proud to be a part of the Providence family and look forward to working with them to expand our offering for artists, entertainment companies and corporate brands that consistently turn to TAIT for spectacular live experiences.”
Scott Marimow, Managing Director at Providence, said: “TAIT is regarded as the gold standard in the industry for its differentiated capabilities, global presence, client relationships and track record of delivering the finest live event solutions in the world. The company is also well positioned for sustainable growth from strong, secular trends, as artists, entertainment concepts and brands are spending more on live events and production quality to create memorable experiences that drive heightened consumer engagement and sharing across social media. We are excited to partner with such a passionate management team and look forward to working together.”
Providence has over two decades of experience investing in and creating lasting value at a wide range of live event-based companies. Current and previous investments consist of Ambassador Theatre Group, Learfield, Major League Soccer, Superstruct, Topgolf, Yankees Entertainment and Sports Network, European Media Partnership and World Triathlon Corporation (Ironman).
Michael Dominguez, Managing Director at Providence, said: “Over the past four decades, TAIT has grown to become an industry leader. We feel fortunate to have the opportunity to partner with an outstanding team in order to accelerate the company’s growth and further invest in its vast IP portfolio and technological capabilities, which are applicable across multiple client types and end markets. Our investment in TAIT is a great fit with Providence’s growing portfolio of category-leading businesses focused on live, out-of-home events and experiences that are highly valued in an increasingly digital world, and that continue to benefit from attractive underlying consumer trends.”
Evercore served as TAIT’s financial advisor and Pepper Hamilton LLP served as legal advisor to TAIT. Lazard served as Providence’s financial advisor and Weil, Gotshal & Manges LLP served as legal advisor to Providence.
TAIT is the World Market Leader in designing, constructing and delivering the finest live event solutions in the world. Whether it’s creating awe-inspiring spectaculars, complex touring stages, theatre engineering solutions, brand activations or cruise ship installations, TAIT delivers world-class solutions for live experiences. With its proprietary entertainment automation platform, custom-made products, and creative engineering, TAIT’s cutting-edge offerings continue to advance industry standards and exceed client expectations. As a global network of over 600 employees in 12 office locations, TAIT has worked on projects in over 30 countries, all 7 continents and even outer space. TAIT’s diverse group of clients include Taylor Swift, Cirque Du Soleil, The Metropolitan Opera House, NASA, National Geographic, Beyoncé and The Olympics.
About Providence Equity Partners
Providence is a premier global asset management firm with approximately $40 billion in aggregate capital commitments. Providence pioneered a sector-focused approach to private equity investing with the vision that a dedicated team of industry experts could build exceptional companies of enduring value. Since the firm’s inception in 1989, Providence has invested in more than 180 companies and has become a leading equity investment firm focused on the media, communications, education and information industries. Providence is headquartered in Providence, RI, and also has offices in New York and London. For more information, please visit www.provequity.com.
Mia C. Tinari
Global Head of Marketing & Communications
Providence Equity Partners
Andrew Cole / Hayley Cook
Sard Verbinnen & Co
Stage is one of the world’s largest theatre producers and owners
Advance Publications, Inc. (“Advance”), CVC Capital Partners (“CVC”) and Joop van den Ende are pleased to announce today that Advance has agreed to acquire 100% of the shares of Stage Entertainment.
Stage Entertainment is one of the world’s largest theatre producers and owners, operating 20 theatres and partnering with world-renowned creative talent to produce shows attended by over seven million visitors annually. The company entertains audiences in the Netherlands, Germany, Spain, France, Italy, Russia, the United Kingdom and the United States. Leading titles include Disney’s The Lion King and Aladdin, Mamma Mia!, Mary Poppins, Anastasia and Tina: the Tina Turner Musical. Stage Entertainment employs more than 3,000 people worldwide.
Advance is a family-owned company founded in 1922 that operates and invests in a broad range of media, communications and technology businesses globally. Its European interests include Condé Nast brands such as Vogue, Vanity Fair, GQ and Wired, and Leaders, the sports conference business, as well as video programming brands Eurosport and Discoverythrough its ownership stake in Discovery. Advance recently embarked on a multi-billion dollar capital redeployment initiative to accelerate diversification while fostering growth and transformation.
Steven Newhouse, Co-President of Advance said: “We are delighted to add Stage Entertainment and its employees to the Advance family of companies. Stage Entertainment has an outstanding track record of bringing world class musicals to audiences worldwide. With our deep roots in creative storytelling and appetite for additional investment, we believe we are the right long-term owner for Stage Entertainment. We are grateful to Joop van den Ende for his creative vision and to CVC for their operational excellence, both of which have positioned Stage Entertainment well for long-term growth. We are delighted that Joop has agreed to remain involved as a Special Advisor to us during this next chapter of the company. We look forward to working with Arthur de Bok and the management team to expand the business while remaining the definitive partner of choice to creators of musical theatre.”
Ivo Lurvink, Partner at CVC, added: “Our partnership in Stage Entertainment with Joop van den Ende has helped support the transition of the business from a founder-owned company to the leading integrated musical theatre platform that it is today. We are proud to have played a role in this journey, and wish Advance and the management team every success for the future.”
Joop van den Ende commented: “Today marks another milestone in the development of the company I founded in 1998, and it is with great pride that we transition the business to Advance, a long-term strategic shareholder that deeply understands creative businesses and has a long history of partnership with the world’s top writers, photographers, illustrators, designers and other creative talent. I strongly believe in the future of musical theatre and fully expect that Advance will ensure Stage Entertainment remains at the forefront of this industry for many years to come.”
Arthur de Bok, CEO of Stage Entertainment: “We are very pleased to have Advance as our new shareholder since they have demonstrated strong appreciation for balancing artistic excellence with solid business performance. Advance is completely aligned with our vision for the strategic direction and growth opportunities for Stage Entertainment and we are delighted by their long-term view on the business. We believe they will be a wonderful partner for the next phase of the company’s growth. I’d like to take this opportunity to thank CVC and Joop for their support, expertise and guidance in recent years and we are very much looking forward to entering this new phase with Advance.”
The transaction has no financing condition and is subject only to customary regulatory approvals, with closing anticipated in Q4 2018. The financial terms of the transaction have not been disclosed. Advance was advised by Citi, CMS and EY and CVC/Joop van den Ende were advised by Goldman Sachs, De Brauw Blackstone Westbroek, Alvarez and Marsal, KPMG/Meijburg and ABN AMRO.
30 April 2018: Hg today announces the sale of Teufel, a leading European direct-to-consumer online brand for audio solutions, based in Germany, to Naxicap Partners, one of France’s leading private equity companies.
Teufel’s ability to control its entire value chain puts it in a unique position and enables it to offer better value for money to its customers. Based in Berlin with around 200 employees, Teufel is focused on the mid-to-high-end segment of the audio solutions market and has built a very strong customer base over the last 40 years.
Since Hg partnered with Teufel in 2010, it has supported the successful transition from a traditional loudspeaker company to a high-quality brand for state-of-the-art audio solutions, through the introduction of new categories and technologies, including wireless streaming, headphones and portables.
Martin Block and Stefan Margolis, Hg, said:
“We wish Sascha and Joachim well for the next phase of growth and we congratulate them and the team at Teufel for the great results over the last few years. Teufel has achieved a number of milestones during this time, including the acquisition of Raumfeld in 2010 and substantial revenue growth, increasing from around €40m to over €100m today.”
Sascha Mallah and Joachim Wimmers, Managing Directors at Teufel said:
“We are very happy to be joining forces with Naxicap Partners, a very successful and experienced investor in the field of consumer audio. Together we are going to tap Teufel’s full potential across new markets. We will continue to offer our core products, such as AI speakers, headphones, portable audio and compact home cinema, to a wider direct customer base. We want to thank Hg for their strong commitment over the years and highly valuable support. The future will be loud!”
PARSHIP ELITE Group
Following increased focus on the digital consumer sector, Oakley partnered with the management of Parship, the leading German online dating site, in April 2015. A combination of strong organic growth and the synergistic acquisition of premium matchmaker ElitePartner has resulted in EBITDA increasing by more than 3x since Fund II’s original investment.
In September 2016 Fund II sold a controlling stake in PEG to ProsiebenSat.1 valuing the business at €300m and returning €125.3 million to the Fund. Today NuCom is acquiring Fund II’s remaining 38.5% stake in PEG based on an enterprise value of €440 million. Fund II will receive further gross proceeds of c.€138 million generating overall returns of 4.7x gross money multiple and a gross IRR of approximately 119% for Fund II.
In a separate transaction, Oakley has also agreed to sell its remaining 9.9% stake in Verivox to NuCom at an enterprise value of €530 million marking the end of a long and successful relationship with the business.
Oakley originally partnered with Verivox, the online price comparison website, back in 2009 and sold a majority stake to ProSiebenSat.1 in August 2015. The partnership with ProSiebenSat.1 has helped drive further growth through media investment, with revenues more than doubling since 2014. Fund II will receive gross proceeds of c.€53 million, crystallising returns of approximately 2.5x gross money multiple and approximately 43% gross IRR for Fund II.
Peter Dubens, Managing Partner of Oakley Capital Private Equity, commented:
“The success of our digital consumer strategy continues. In this case we identified the lead players in developing local markets and combined with strong management teams have enjoyed impressive organic growth. In addition, Oakley facilitated ambitious and transformative M&A in combining Parship with ElitePartner shortly after our investment. Alongside ProSiebenSat.1 we have supported Verivox in their continued diversification into new product verticals and increased investment in offline advertising to drive revenue growth.
We would like to thank Tim Schiffers, Henning Rönneberg and Marc Schachtel at PARSHIP ELITE Group and Chris Öhlund at Verivox along with their respective management teams, as well as the team at ProSiebenSat.1. We wish them all the very best as they take the businesses forward to the next phase of growth.
The digital consumer sector remains a focus for Oakley and with our investments in Facile.it and Casa & atHome, we continue to build on our expertise in the area.”
Kinnevik supports the proposed combination of MTG’s Nordic Entertainment and MTG Studios businesses with TDC Group
Kinnevik AB (publ) (“Kinnevik”) today announced that it supports the proposed combination of Modern Times Group MTG AB (publ)’s (“MTG”) Nordic Entertainment and Studios businesses (together “MTG Nordics”) with TDC A/S (“TDC Group”), and that it is expected to become a 5.6 percent shareholder in the combined company.
As announced today by MTG and TDC Group, the companies have entered into an agreement to combine MTG Nordics with TDC Group. As consideration, MTG will receive 308.9 million newly issued shares in TDC Group, worth approximately SEK 16.3bn per yesterday’s closing price, and SEK 3.3bn in cash. MTG intends to distribute all the received TDC Group shares to its shareholders immediately upon completion. The completion of the combination is subject to, inter alia, approval by the shareholders of MTG and TDC Group at their respective General Meetings, which are currently expected to be held during the second quarter of 2018, as well as necessary authority approvals.
Kinnevik is today the largest shareholder in MTG, holding in aggregate 20.0 percent of the shares and 47.6 percent of the votes. Kinnevik has made an irrevocable commitment to vote in favor of the combination and the distribution at the general meeting in MTG, and not to sell any shares or otherwise deprive itself of any voting rights in MTG until the distribution is completed, subject to disposals according to customary conditions and for regulatory purposes. In addition, Kinnevik has committed to certain thresholds in relation to potential acquisitions of TDC Group shares until the distribution is completed, subject to customary conditions.
When the TDC Group shares have been distributed to MTG’s shareholders, Kinnevik is expected to hold 5.6 percent of the shares in TDC Group.
Georgi Ganev, CEO of Kinnevik, commented: “MTG has executed a successful strategic transformation from a traditional national broadcaster into a global digital entertainer. The proposed combination will create Europe’s first fully convergent media and communications provider by teaming up with a well-known partner in Denmark and Norway. The combination will at the same time enable MTG to focus on the development of its global digital entertainment verticals. We are supportive and excited about the proposed transaction.”
For further information about the financial details and preliminary timetable of the combination, the distribution of the TDC Group shares to MTG’s shareholders, as well as information about the combined company and the new MTG, please refer to the press releases issued by MTG at www.mtg.com and TDC Group at www.tdcgroup.com.
This information is information that Kinnevik AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 07.35 CET on 1 February 2018.
Munich/London February 1, 2018 – Aurelius Omega Limited (“AOL”), a group company of AURELIUS Equity Opportunities SE & Co. KGaA (ISIN DE000A0JK2A8) refers to the proposed acquisition of the books division of Connect Group PLC (“Connect Books”) pursuant to a share purchase agreement dated 20 December 2017.
Very shortly after signing of the transaction, we were informed that there was a severe under-performance of the Connect Books business for the month of December 2017, which led to a significant decrease in forecasted EBIT for the financial year 2017/2018. This was a marked deviation from the forecasts provided to us by Connect Group before signing of the transaction. As a result of this change, our banking partners confirmed that they could no longer provide financing for the proposed acquisition.
We have made several attempts to find a mutually satisfactory solution with Connect Group and the banking partners, but it now appears unlikely that the transaction will proceed.
The play centre chain Leo’s Lekland continues its rapid expansion. Through the acquisition of Andy’s Lekland, the second largest chain in Sweden after Leo’s Lekland, the expansion rate is further increased and the deal will strengthen Leo’s Leklands position primarily in the Stockholm region. The transaction comprises five play centres with a combined turnover of c. SEK 45 million.
The transaction means that Leo’s Lekland takes over a total of five Andy’s Lekland play centres in Stockholm (3), Gävle (1) and Örebro (1). The three play centres in Stockholm will be rebuilt and reopened under the Leo’s Lekland brand. The play centres in Örebro and Gävle will continue to operate under the Andy’s Lekland brand but under the management of Leo’s Lekland.
“Finding attractive locations in the Stockholm region is challenging and we believe the deal constitutes an opportunity to expand and consolidate our leading position, primarily in the capital of Sweden. We will now rebuild and adapt the play centers in Barkarby, Bromma and Länna to fit into Leo’s concept” says Joakim Gunler, CEO of Leo’s Lekland
For further information, please contact:
Joakim Gunler, +46 (0)70 553 30 21, CEO of Leo’s Lekland
Leo’s Lekland is the largest play centre chain in the Nordic region with a total of 41 play centres (24 in Sweden, 9 in Norway, 5 in Denmark and 3 in Finland). When the company was started in 2006, the founders wanted to create a meeting place for families with focus on play and movement. This is more relevant than ever since reports from WHO show that children spend too little time on physical activity. The company’s success is based on a strong concept of play, fun and movement for the whole family with security, cleanliness and service in the first place. For more information, see www.leoslekland.se.