PAI Partners in €200m French media deal

The investment is the second transaction made by PAI Europe VI, which is attempting to raise €3bn.

Paris-based PAI Partners has agreed to acquire a majority stake in Euro Media Group (EMG), a production business based in France.

Financial details of the transaction were undisclosed, but a source familiar with the matter told PEI the enterprise value was just under €200 million.

Prior to the acquisition, the business had no majority shareholder, which meant there were lengthy negotiations before PAI was able to secure the deal, the source said.

EMG’s founders and original shareholders will reinvest alongside PAI Partners, together with the senior management team, according to a statement.

EMG, which was created in 1983 as Euro Television, offers a range of services to broadcasters and producers. It provides studios, outside broadcasting trucks, media centres and specialised services such as ultra-slow motion, wireless transmission, aerial cameras or digital content management systems. EMG provides audiovisual services for events like the recent winter Olympic Games, the FIFA World Cup, the Tour de France and the Monaco Grand Prix.

In recent years, the company has completed add-on acquisitions in France, including the State-owned Société Française de Production in 2001, as well as elsewhere in Europe. It also merged with Dutch company UBF Media Group in 2007, which doubled the size of the business.

“Our common goal is to enable EMG to reinforce its European leadership, through further acquisitions and the development of new services,” Nicolas Holzman, partner at PAI, said in the statement.

The deal, which still needs authorisation from competition authorities in Brussels, is expected to complete in the second quarter of the year.

This will be the second investment PAI will make from its new fund, PAI Europe VI, which held a €1.4 billion first close in January and is looking to raise €3 billion.

Earlier this month, PAI and The Carlyle Group entered into exclusive talks with French-based Schneider Electric to acquire its business unit Custom Sensors & Technologies. The pair will pay about $900 million for a majority stake in the business, PEI reported at the time.