U.K.'s 3i grabs 40% stake in Boomerang
EmptyMADRID -- British-based private equity group 3i has purchased a 40% stake in Spanish independent television production company Boomerang TV for €36.4 million ($52.6 million), which will help fund the producer's expansion plans, the companies said Monday.
The deal was structured through a combination of share purchases and a capital increase, according to a statement released by 3i and Boomerang TV, which is based in Madrid.
The remaining 60% stake remains in the hands of Boomerang TV's five founders.
"The agreement with 3i transforms Boomerang into a great business in the Spanish audiovisual sector," Boomerang TV general manager Pedro Ricote said.
According to the statement, the cash injection will be used to triple the size of the company over the next five years.
"What's impressed us most about Boomerang TV is (the fact) that it is the leader in independent production (and) its successful development of hits," 3i managing director for Spain Maite Ballestar said. "Also, the market for content is one we know very well and it still has a lot of room to grow in Spain."
3i has investments in such media companies as the U.K.'s Sparrowhawk Media, Boxer in Sweden and India's Nimbus Group.
Founded in 1998 and currently worth €91 million ($131.48 million), Boomerang TV is composed of 14 companies and supplies Spanish national and regional broadcasters with programming including chat shows, game shows and drama series.