Palamon Capital Partners, a European leading mid-market private equity firm, has acquired a significant stake in D&D Media Group, one of the leading independent audiovisual production
Palamon Capital Partners, a European leading mid-market private equity firm, has acquired a significant stake in D&D Media Group, one of the leading independent audiovisual production companies in the Benelux, Germany and France.
The transaction involved the acquisition of a 30 per cent stake from KBC Private Equity and a further equity stake from Marc Dullaert and Paul Dumas, the firm’s founders and principal managers, who will continue to manage the business and will retain substantial shareholdings.
Palamon received legal advice from Slaughter and May in London, while financial and tax due diligence was provided by PricewaterhouseCoopers in Munich. The vendors were represented by Amsterdam law firm De Brauw Blackstone Westbroek and their financial adviser was Media Capital Partners, also of Amsterdam.
D&D is an independent audiovisual production house specialised in drama, entertainment and factual entertainment for TV and new media channels. The firm is among the largest players in its sector in Belgium and the Netherlands, has strong niche positions in Germany and France, and will start operations in Scandinavia this year. D&D has won various international TV and film awards, including two César awards in 2005 for the film Quand la Mer Monte and the Rose d’Or in Montreux last year for the best international pilot with 90DB.
Palamon views D&D as the basis for a pan-European buy-and-build strategy. Says partner Daan Knottenbelt: ‘Palamon’s thesis-driven approach enabled us to identify a number of fundamental changes affecting the media sector that present substantial value creation opportunities for content producers. D&D, through its leading position in advertiser funded content and fast growing presence in interactive entertainment formats, is uniquely positioned to benefit from these market trends.’
His colleague Fabio Massimo Giuseppetti says: ‘D&D is a company with an impressive track record, a unique market position, and world class management. We look forward to supporting D&D’s management team in building a leading multi-media production company through both organic growth and acquisition.’
Adds Dullaert, who is chief executive of D&D: ‘I am pleased to have found in Palamon an investor that shares our entrepreneurial mindset and supports our vision. Paul Dumas and I believe that Palamon’s pan-European approach, together with its track record of building market-leading businesses, will significantly accelerate our expansion plans across Europe.’
The investment in D&D is the eighth for Palamon’s second fund, Palamon European Equity II, which was raised in 2006 and has commitments of EUR670m. The acquisition brings its commitments to 40 per cent of the fund.
Founded in 1999, Palamon Capital Partners focuses on providing equity for European growth services companies, originating, executing and managing investments in the UK, Germany, Italy, Spain, Denmark, Belgium, Sweden, and France. The firm manages Palamon European Equity and Palamon European Equity II, capitalised at a combined EUR1.1bn, on behalf of investors mostly based mainly in the US and Europe.
