Montagu Private Equity has agreed to sell Emitel, a Polish radio and TV broadcast infrastructure operator, to US-based infrastructure firm Alinda Capital Partners.
Financial details of the transaction were undisclosed, but it is understood the business is being sold for approximately $1 billion, netting Montagu a return of more than 2x.
Emitel owns and operates a nationwide network of tower infrastructure sites across Poland, which enables television and radio broadcasters to send signals to most households in the country.
Montagu backed the company in 2011, with Innova Capital, Value4Capital and the European Bank for Reconstruction and Development (EBRD) co-investing alongside them, according to a statement.
Under Montagu’s ownership, Emitel invested substantially in its infrastructure, allowing the company to lead the analogue-to-digital migration of TV in Poland. It also acquired two further businesses, to expand its portfolio of broadcast and telecom towers – which are now the main source of television for more than 30 percent of Polish households.
Montagu, which declined to comment beyond the statement, made the investment from its fourth fund, a €2.55 billion 2010-vintage. The exit is the firm’s ninth divestment in the last 18 months. These exits, which include Host Europe, ghd, Hansen Protection, Unifeeder, ADB and BNS Medical, had an average return of 2.5x. Following the sale of Emitel, Montagu will have returned nearly €2.2 billion to investors during this period, it is understood.
Goldman Sachs acted as a financial advisor to the owners of Emitel. Weil Gotshal & Manges acted as legal advisor and PwC, Arthur D. Little and Solon Management Consulting supported Montagu’s due diligence process. HSBC acted as financial advisor to Alinda, while Linklaters acted as a legal advisor. Deloitte and Analysys Mason provided due diligence support.