Target Information

Cinelux is the leading provider of professional lighting services in Spain's audiovisual sector, with expectations to achieve a revenue of €20 million in 2022. Founded in 1988 and headquartered in Madrid, Cinelux has expanded with two subsidiaries in Barcelona and one in Galicia. Since joining forces with Nazca Capital in July 2019, the company has cemented its position in the market, significantly increasing its stake in the fiction segment and boasting the largest lighting inventory in Spain. Cinelux's commitment to technology and innovation is evidenced by its latest generation equipment and consistent investment in sustainable practices.

The company has experienced organic growth due to rising demand for content from streaming platforms and the television industry's shift towards external production and spectacular live events, as seen with programs such as Operación Triunfo and La Voz. Additionally, Cinelux has embraced new technologies, leading to the establishment of Spain's first virtual studio and initiatives aimed at sustainability, such as replacing traditional lighting with LED solutions.

Industry Overview in Spain

The audiovisual industry in Spain has seen remarkable growth in recent years, fueled by the increasing consumption of digital content and the global expansion of streaming services. As traditional broadcasting evolves, there is a growing trend towards high-quality productions and live events, which have necessitated enhanced lighting and production services.

Additionally, the Spanish government has rolled out various incentives to promote audiovisual projects, which has further stimulated investment in the sector. The commitment to sustainability within this industry has also been gaining traction, with companies prioritizing eco-friendly practices and technologies.

In the context of these developments, the demand for professional lighting services continues to increase. Firms such as Cinelux are positioned to benefit from these trends, especially with strategic partnerships and acquisitions that align with the shifts in consumer and production company needs.

The Rationale Behind the Deal

The completion of the divestment from Nazca Capital to GED Capital reflects a strategic alignment of interests focused on continued growth for Cinelux. This move comes after a successful period of both organic and inorganic growth, evidenced by a 60% increase in revenue from 2018 to 2022. Nazca’s management and support during this phase have been instrumental in shaping Cinelux’s trajectory, and the transition to GED Capital is designed to amplify further growth and institutionalize the company’s market leadership.

Information About the Investor

GED Capital is a prominent investment firm focused on supporting the development of small and medium-sized enterprises across various sectors. Recognized for fostering growth and enhancing corporate functions, GED Capital aims to create long-term value in its partnerships. With a diversified portfolio, the firm has a keen interest in the audiovisual space, believing it holds significant potential for evolution and profitability.

GED Capital's approach emphasizes collaboration with existing management teams to leverage their expertise while implementing best practices aimed at ensuring operational excellence. This is expected to align perfectly with Cinelux’s ongoing commitment to innovation and growth.

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Dealert views this transaction as a promising investment for GED Capital, given Cinelux’s strong market position and the rising demand for audiovisual services in Spain. Cinelux has successfully carved out a niche in a rapidly evolving industry, with significant growth prospects due to increased content generation by streaming platforms and the entertainment sector's ongoing expansion.

The experience and capabilities brought by GED Capital, combined with the existing management led by David García, create a solid foundation for Cinelux’s future. This investment is not just an acquisition; it symbolizes a strategic partnership that can drive sustained growth.

Moreover, the move towards sustainability adds an attractive layer to the investment, as businesses increasingly recognize the importance of aligning with eco-friendly practices. As Cinelux continues to innovate and expand its service offerings, this partnership with GED is poised to enhance overall brand value and operational efficiency.

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