Private equity fund Advent International recently completed the purchase of the sports marketing agency in a deal worth an estimated EUR560m.
Canal+ has completely withdrawn from the company, while RTL will continue to have stake in the firm.
Advent International and RTL will set up a new company to purchase all the shares held by the RTL Group and Canal+. Both companies held a 46.4 percent stake.
Advent International is expected to hold 75 percent of the new company and RTL Group the remaining 25 percent.
The sale is subject to the confirmation of financing and the approval of the European antitrust authorities.
To the surprise of some, Jean-Claude Darmon will continue as chairman and chief executive officer of the group – and is being linked with a possible stake holding of around 10 percent.
Said one insider close to Sportfive: “That Darmon remains as CEO is remarkable given how he is linked with so many of the personality clashes among its senior executives which characterised its first year.”
Yet it is clear the charismatic Frenchman is destined to stay - and acquire a healthy equity stake in the firm.
Sportfive represents the broadcasting rights of around 250 European clubs, 38 European football federations, and all five of Europe’s major leagues. It was formed by the coming together of Canal+’s Sport+, RTL’s UFA Sports and Groupe Jean-Claude Darmon in 2001.
Although a major player, Sportfive has made more headlines for behind the scenes conflict than becoming the major international force many expected. One of its biggest casualties was Jerome Valcke who is believed to have quit after a clash of personalities with certain senior figures. He is now head of FIFA’s marketing department.
Said Pascal Stefani of Advent International: "Sportfive is a fantastic company which has come through a difficult time in the sports rights market and emerged all the stronger. Our plan is to continue the work started by Jean-Claude Darmon at the time of the merger in 2001, encouraging integration across the group and building the business' position in the international sports arena and in major sports events."
Added Advent’s Georg Stratenwerth: "Advent's global structure, and strong presence in France and Germany as well as other key European markets such as the UK, Italy and Spain, complements the international nature of this business. As an experienced investor in the media and broadcasting sectors, we look forward to working with management to take the business to the next stage of its development."
This acquisition represents the fifth investment for Advent International in four months: in December 2003, the firm invested in Radio 538, one of Holland's leading commercial radio stations; Parques Reunidos, one of Europe’s top five amusement park operators; and in Moeller Group, one of Germany’s largest privately owned industrial and buildings electronic component producers. Earlier this month, Advent announced its acquisition of Dufry Group, a leading global duty-free retailer.
Advent International is a leading private equity investor in the media/broadcasting sector, with over 25 investments worldwide. In addition to Radio 538, its media investments include Danubius, the leading commercial radio station in Hungary; PrimaCom, a German cable TV business, later quoted on NASDAQ; Zone Vision, a pan-European channel thematic broadcaster and programme distributor; Scandinavian Broadcasting Systems, a pan-Scandinavian broadcaster, subsequently quoted on NASDAQ; @entertainment, Poland’s largest pay-TV provider; Radio Zet, one of only two commercial radio stations in Poland; Impactos, Frecuencia y Cobertura en Medios (IFC), Mexico's No. 2 outdoor advertising company; and Thomson Directories, the No. 2 UK market leader in business directories, acquired by SEAT Pagine Gialle.
Advent International failed to return sportbusiness.com
