CapMan and operative management acquires Talentum's TV business

CapMan Press Release 22 January 2008 at 8.46 a.m.
CapMan Buyout VIII fund, Roope Lehtinen and the company's other management have entered into an agreement to acquire Varesvuo Partners Oy, a Finnish television content and commercial film production company, from Talentum. The agreement covers all companies belonging to Talentum's TV business with the exception of Oy Filmiteollisuus Fine Ab. The investment is made to finance the company's growth and to strengthen its position as an independent company.
The company is specialised in the production of television programmes and commercial films. In addition to its core business areas, it also rents production equipment and offers post production services via its subsidiaries and associated companies. The company's subsidiaries include, among others, Moskito Television, Kaivopuiston Grillifilmi and Angel Films. The transaction has a debt-free value of approximately EUR 11 million.
The company produces programmes for all of Finland's free to air TV channels and major pay TV channels as well as commercial films for Finland's biggest advertisers and numerous international customers. The company's turnover for the period 1-9/2007 was approx. EUR 12.1 million and it employed 74 persons.
CapMan's target together with the management is to build the company into a substantial independent production company by growing its product offering, expanding geographically and investing in web-enabled applications development around TV programmes.
"We believe that content will grow further in importance in the rapidly evolving media sector, and that private equity investor such as CapMan can, in partnership with the companies' management, accelerate international consolidation of independent production companies and by doing so, achieve significant economies of scale," says Olli Liitola, CapMan Senior Partner.
"Varesvuo is a trailblazer in Finnish independent TV programme and commercial film production, and the company has outstanding media expertise and creativity. CapMan entered into negotiations when Talentum expressed a wish to divest its non-core business. We see rich opportunities to develop the industry both in the Nordic countries and beyond," Liitola continues.
"CapMan is an excellent partner for us in the development and growth of our internationalising and innovative business," says Roope Lehtinen, CEO of Moskito Television and the company's coming CEO.
The investment in the company is made by CapMan Buyout VIII fund, in which CapMan Plc is a substantial owner. The execution of the transaction is subject to approval by competition authorities.
CapMan Buyout makes both equity and mezzanine investments in middle market buyouts in almost all industries in the Nordics. The Buyout team comprises 25 experienced professionals. The current team has made over 60 Nordic investments and close to 40 exits.
For further information, please contact:
Olli Liitola, Senior Partner, CapMan Buyout, tel. +358 207 207 506 or +358 400 605 040
Roope Lehtinen, CEO, Moskito Television Oy, tel. +358 41 590 007
CapMan is one of the leading alternative asset managers in the Nordic countries and manages Nordic funds with approximately EUR 3 billion in total capital. CapMan has four investment areas (CapMan Buyout, CapMan Technology, CapMan Life Science and CapMan Real Estate), and each of them has a dedicated team and funds. Altogether CapMan employs over 100 people in Helsinki, Stockholm, Copenhagen and Oslo. CapMan was established in 1989 and its B shares are listed on the Helsinki Stock Exchange since 2001.
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