Advent completes first Spanish PTP

Advent International has completed the E165m takeover of listed Spanish leisure group Parques Reunidos after gaining acceptances from shareholders representing over 90 per cent of the company.

The first public-to-private management buyout in Spain has been completed, with Parques Reunidos falling into the hands of global private equity firm Advent International for E165m.

Spain’s CNMV securities regulator said Advent had received acceptances representing 24m shares, or 90.55 per cent of Parques Reunidos’ total capital. This surpassed a minimum acceptance level of 75 per cent.

The Parques Reunidos board of directors recommended the E6.25 per share offer last month, describing it as ‘just and reasonable’. The offer was raised following an initial E6.10 per share approach in September. The investment is being made from Advent’s Global Private Equity IV Limited Partnership fund.

The company, which is Spain’s largest leisure group, was floated by private equity firms including Cinven and Mercapital in 1999. The shares fell from an issue price of E5.4 to E2.35 at the end of 2002 but have recovered in 2003, fuelled by Advent’s interest.

In the year to September 2003, the firm saw its net profits more than double to E5.6m on sales up from E64.9m to E84.3m. The group’s total number of visitors climbed 56 per cent during the year to 7.45m following the opening of its oceanographic park in Valencia in February.

Parques Reunidos was formed in 1967 to operate an amusement park concession in Casa de Campo, Madrid, which was granted by Madrid Town Hall. It has expanded through the acquisition of amusement parks, animal parks, water parks and cable railway.