NEP Group, a portfolio company of Crestview Partners, has entered into an agreement to acquire Mediatec Group, one of the largest European providers of equipment and services used in the broadcast and live event industries. The seller of Mediatec is Stena Adactum, a Swedish private equity firm which acquired a majority interest in the company in 2007.
Mediatec is one of Europe’s largest providers of integrated technical services for event and television productions. The company’s services and equipment are used for outside broadcast, studio production and video display. Mediatec is headquartered in Kungalv, Sweden and the company has additional offices in Norway, Denmark, Finland, Germany, Switzerland and the UK. Mediatec was founded in 2007 (www.mediatecgroup.com).
NEP is a worldwide provider of outsourced services to the broadcast and live event industries, offering technical services for outside broadcast, studio production, video display, host broadcasting and post production. NEP is headquartered in Pittsburgh with additional offices located in the UK, Ireland, the Netherlands, Dubai and Australia (www.nepinc.com). NEP was acquired by Crestview in December 2012 from American Securities.
“Mediatec is a leader in the broadcast and live events industries in Europe, and we are excited to have their entire team join NEP,” said NEP CEO Kevin Rabbitt. “We see fantastic opportunity for growth in Europe, and I look forward to working with Paul Henriksen, the managing director of Mediatec Broadcast and Kenneth Paterson, the managing director of Mediatec Solutions, along with both of their teams, to continue to expand their business.”
Mediatec Broadcast and Mediatec Solutions will continue to operate as separate entities under its current leadership teams. Paul Henriksen and Kenneth Paterson will become members of NEP’s senior management team, and will also be invested in the company as shareholders.
The acquisition of Mediatec by NEP will expand its reach across Europe and add to its worldwide inventory of broadcast equipment. For example, NEP will now have over 100 high-definition outside broadcast units; HD flypacks, satellite uplink trucks; smaller camera systems and other audio visual packages; specialty and wireless cameras; post-production facilities in Dublin, Oslo, Helsinki, Zurich and Munich; studio facilities in Los Angeles, New York, Connecticut, London, Sydney, Melbourne, Oslo and Helsinki; thousands of plasma, LED, and projection video displays; and a fleet of mobile LED trucks across North America and Europe.
“NEP has a reputation for excellence around the globe, and we are excited to become part of their worldwide network,” said Paul Henriksen. “We know that this will provide a fantastic opportunity to work within NEP to continue to grow Mediatec’s presence throughout Europe and develop smart solutions for our clients.”
Crestview Partners invests from $100 million to $250 million in companies with enterprise values up to $3 billion. Sectors of specific interest include energy, financial services, healthcare, industrials and media. The firm will invest in other industries where its relationship network and senior operating capabilities provide an advantage. Crestview, founded in 2004 and headquartered in New York, manages funds with over $7 billion of aggregate capital commitments (www.crestview.com).
NEP expects to finance the acquisition through a combination of incremental borrowings, assumption of Mediatec’s existing debt and additional cash contributed by funds managed by Crestview Partners in exchange for common equity, as well as equity contributions by NEP management. NEP has obtained committed financing from Barclays Bank PLC.
Private equity group Stena Adactum, the seller of Mediatec Group, is based in Göteborg, Sweden (www.StenaAdactum.com).
Stella Advisors (www.stellaadvisors.com), an investment bank that specializes in the media industry, served as Mediatec’s financial advisor. Stella Advisors has offices in London and Stockholm.
© 2015 PEPD • Private Equity’s Leading News Magazine • 3-27-15