The company is being bought from trusts established by IMG’s founder, the late Mark McCormack, and from the family of Arthur J. Lafave, Jr., IMG’s vice chairman.
The deal gives senior management of IMG equity ownership in the company. In addition, the McCormack family trust intends to retain a continuing interest in IMG.
Forstmann Little will finance the acquisition entirely with its own capital. The purchase price was not disclosed.
IMG has a staff of approximately 2,200 in over 60 offices in more than 25 countries and represents many of the world’s top athletes, broadcasters, models, classical musicians, authors, newsmakers and other talent.
In addition to its client representation and event management operations, IMG’s TWI operation is the world's largest independent producer of televised sports programming and distributor of sports television rights, managing a library of more than 150,000 hours.
The deal is subject to regulatory review but all the finance is in place. Forstmann Little will use its own cash to fund the purchase.
The firm’s senior partner, Theodore J. Forstmann Little, said: “This will give IMG an extremely strong capital structure which will enable it to build on its unmatched market position and to grow and acquire.
“We intend to partner with management and to put in place a world-class board of directors that will help IMG grow its business in the years ahead. We welcome the continued involvement of the McCormack family and know that they will be proud of our stewardship of IMG.”
Robert D. Kain and Alastair J. Johnston, who will continue to serve as co-presidents and co-chief executive officers of IMG, said: “The sale of the company to Forstmann Little is a continuation of the McCormack legacy. We now have the ideal partner to help the firm accelerate its growth and realise its full potential.
“With nearly $1billion in annual sales, IMG today is a substantial worldwide business that includes a large television distribution and production operation, along with our better known representation and event management divisions. Our global scale provides many avenues for additional growth, and with Forstmann Little’s help, we plan to leverage this remarkable existing platform to significantly grow the business while maintaining continuity and stability of client relationships.”
The future of privately-owned IMG had been subject to speculation since the death of its founder, Mark McCormack, in May last year.
