CCMP Capital, Providence Equity Partners, Quadrangle Capital Partners and Thomas H Lee Partners will sell Spanish cable broadband service provider Ono to Vodafone for £6 billion (€7.2 billion, $10 billion) on a debt and cash free basis, according to a statement.
Ono offers high speed broadband and pay-TV services in Spain. The sale price represents a multiple of 7.5x EBITDA and 10.4x of 2013 free cash flows. The transaction is expected to close during the third quarter of this year.
Providence and CCMP declined to comment, but a source familiar with the matter said both firms booked a 1.6x return on the exit. Providence bought a 15.2 percent stake in the business in 2005 using its $4.25 billion Providence Equity Partners V fund. It is understood that CCMP Capital also owned a 15.2 percent stake in the company.
Quadrangle Capital and Thomas H Lee Partners did not respond to a request for comment at press time. Quadrangle owned a 9 percent stake, while Thomas H. Lee Partners owned 15 percent of the business. Ontario Teachers Pension Plan and Bregal Investments owned 4.8 percent and 1.4 stake of Ono, respectively, according to the company’s latest annual report.
In the twelve months ending 31 December 2013, Ono reported revenues of €1.6 billion and EBITDA of €680 million, according to the statement.