US-based broadcast solutions firm NEP has acquired Dutch video specialist Consolidated Media Industries for about US$102m in cash to expand its reach in Northern Europe.
US-based broadcast solutions firm NEP has acquired Dutch video specialist Consolidated Media Industries for about US$102m in cash to expand its reach in Northern Europe.
Private equity-backed NEP has been on an acquisition spree this year, buying up outside production companies across Europe to increase its presence in the region.
It said the CMI deal enables it to offer more than 120 HD mobile units among a growing range of broadcast equipment facilities.
CMI CEO Michiel van Duijvendijk said: “We are excited to become part of NEP’s growing worldwide network of brands.
“Their global presence will give us a great opportunity to deliver the broad variety of unique workflow solutions that CMI has developed over the years.”
NEP is assuming CMI’s debt and incremental draw of US$17m on a revolving credit facility as part of the transaction, according to ratings agency Moody’s. Financial details were not disclosed.
Stella Capital Advisors provided investment banking advisory services to NEP, with Jones Day serving as legal adviser. CMI was financially advised by Macquarie Capital, while Allen & Overy acted as legal adviser.
Pulls share offering
NEP announced on 4 August that it has postponed an initial public offering it had launched a month before because of unfavourable equity market conditions.
Barclays and Morgan Stanley were lead joint book-running managers for an offering of 13 million shares at US$15-US$17 each. Jefferies, Macquarie Capital and RBC Capital Markets were joint book-running managers, and Nomura and Stifel were acting as co-managers
NEP CEO Kevin Rabbitt said: “Due to the recent volatility and uncertainty in the public markets, we have decided that this is not the right time for NEP to move forward with an IPO.
“We remain a very healthy company with backing from a supportive financial investor, a strong growth strategy in place and great traction executing against that strategy. We are committed to continuing to execute our plan, and we do not believe this decision will impact our ability to meet our on-going growth goals. At NEP, it is business as usual as our team continues to focus on delivering superior service to our clients each and every day.”
Crestview Partners bought a majority stake in the group at the end of 2012 from another private equity firm called American Securities.
