Lagardère SCA announces that it signed an agreement on November 19, 2006 to acquire Sportfive, the no.1 in European football marketing and media rights, for an enterprise value of €865 million.
This acquisition, which will take place once clearance has been obtained from the European competition authorities, is Lagardère’s first move into the international sports rights trading and agency market. It is in line with Lagardère’s long-term strategy of increasing its presence in exclusive-access media content with high growth potential.
The Sportfive deal is a logical progression from Lagardère’s expansion into the sports industry over the past three years, and the newly-acquired business will benefit from the support of Lagardère’s international media-buying activities.
Sportfive acts as a partner to sporting bodies and clubs, helping them to extract maximum value from their rights. These rights include media rights, which are bought by TV broadcasters and other content-providers (currently via the Internet and mobile phones), and marketing rights, which enable advertisers to reach the public by buying space in a range of media (team shirts, panel advertising at grounds, stadium sponsorship, etc), thereby associating their brand image with football federations, leagues, clubs or sporting events.
At present, Sportfive is involved primarily in football, the most highly-developed and attractive sports market in the world.
With a rights portfolio embracing over 250 clubs, 50 of Europe’s principal football federations and leagues, and media rights for prestigious international football tournaments like Euro 2008 and the African Cup of Nations, Sportfive is the unchallenged market leader.
Sportfive operates across the five continents via a network of 11 offices. For 2006, the company is forecasting revenues of €526 million, EBITDA of €85 million and EBITA of €55 million.
The principal shareholders of Sportfive are Advent International, Goldman Sachs Capital Partners and RTL Group.
Lagardère was advised by Calyon, Goetzpartners, Ernst & Young (Transaction Advisory Services) and Clifford Chance.
Lagardère Conference Call
Monday 20 November, 2006 – 3.30 pm
Replay (available until 27 November, 2006):
Dial-in number – France: +33 (0)1 72 28 01 49 – Access code: 189310#
Dial-in number – UK: +44 (0) 207 075 3214 – Access code: 189310#
Further information: Hélène Martin / tel. 33 1 40 69 19 22 / email@example.com
The Lagardère Group is a market leader in the media sector (books, distribution, press and audiovisual).
The Group also has interests in the high technology sector via a 14.87% stake in EADS.
The reference market for Lagardère shares is Euronext Paris (Eurolist – compartment A).