Permira has acquired ALL3MEDIA, an independent media production company, through a secondary buyout from Bridgepoint for an enterprise value of £320m (US$597m).
This is a reported 5.5x return and a higher than expected value, which includes more than £100m of debt. The deal represents the acquisitive fund manager’s first foray into the media sector.
It also represents a full exit for Bridgepoint, which backed the management buy-in of the business then called Chrysalis TV in 2003 for £45m by MBI Group, a management vehicle led by Steve Morrison.
Morrison is among the team now being backed by Permira, which also includes Jules Burns, David Liddiment and John Pfeil.
All3MEDIA’s television productions include Midsomer Murders, Shameless, Hollyoaks, Richard & Judy, Formula One, and reality TV show Castaway II.
Commenting on the deal, Derek Elliot of Permira says: “We believe that independent producers are addressing a dynamic and growing market. ALL3MEDIA represents an important investment for Permira in content.”
Permira has said that it will back the group’s existing strategy, which is to grow organically and through acquisitions. In Bridgepoint’s hands the business made four bolt-on acquisitions – Lion TV, Company Pictures, Mersey TV, and talent and rights agency Artist Rights Group.
Advisers involved in the transaction for Bridgepoint included UBS (corporate finance), PwC (financial due diligence), and Weil Gotshal and Manges (legal). UBS also advised ALL3MEDIA.