HAMBURG: Miami-based private equity firm H.I.G. has announced that its European affiliate has signed a definitive agreement to acquire a majority stake in Lagardère Sports in a transaction from French media conglomerate Lagardère Group.
Lagardère announced plans in December to sell 75% of its sports business to H.I.G in a deal valuing the agency at €110 million (US$118 million).
The Lagardère Group will retain a minority shareholding of 24.9%. The transaction is subject to clearance by the relevant antitrust authorities.
Lagardère Sports is a leading global sports marketing firm providing sponsorship, media, brand consulting, as well as event management, and athlete management services. It employs approximately 1,300 full-time employees and generates annual sales of more than €450 million. The company, which will be rebranded following the completion of the sale, has long-standing relationships with major brands and rightsholders in the sports market and leverages a truly global network of partners and customers.
Following the closing of the transaction, the company will be led by a new CEO, Stefan Felsing, a highly experienced executive in the sports marketing industry. For almost 20 years, he has held multiple leading management positions within Lagardère Sports and various predecessor companies.
“The global sports marketing segment is a multi-billion Euro industry with attractive long-term growth prospects fueled by the continuously increasing popularity of sports and the digitization of sports marketing services. H.I.G. is looking forward to drive the business to the next level together with a truly global management team,” commented Christian Kraul-von Renner, managing director at H.I.G.
Stefan Felsing added: “I am looking forward to returning to a former place of work in the context of my new responsibilities. Lagardère Sports has enormous potential, particularly given the company’s unique culture and the long-standing trusted partnership with its customers. Together with H.I.G., a strong and experienced investor, we are ideally positioned to continue building on these great assets. We are ready to leverage the full potential of the firm.”
