Target Information

TwentyFour Seven ("24.7"), founded in 2004, is the leading company in Iberia for producing advertising spots for major international brands. With a robust network of offices across Madrid, Barcelona, Palma de Mallorca, and Lisbon, 24.7 captures 75% of its current revenue from Spain. The company also operates in Latin America with a presence in Chile, Argentina, the Dominican Republic, Poland, and Lithuania. As part of its ongoing growth strategy, 24.7 is currently involved in two acquisition processes aimed at further international expansion and plans to integrate two new companies in 2024.

Industry Overview in Spain and Portugal

The advertising production industry in Spain and Portugal has been experiencing consistent growth, particularly as international brands increasingly seek localized content to connect with Iberian audiences. The diversification of media platforms has also contributed to a heightened demand for high-quality advertising production services. Leading companies like 24.7 have capitalized on these trends by leveraging technological advancements and creative talent to deliver impactful campaigns.

Furthermore, as brands continue to expand into Latin America, Iberian production companies are positioned to offer their expertise in this lucrative market. This region shows significant potential for advertising growth, driven by increasing digital penetration and changing consumer behaviors that favor dynamic and engaging advertising formats.

The integration of advanced production techniques and creative services has also fueled innovation within the industry, enabling companies to optimize their operations and deliver tailored content. This trend is expected to continue, driven by the rise of AI and data analytics, which allow for better audience targeting and efficient resource allocation.

With organizations such as 24.7 leading the charge, the Iberian advertising production industry is proving to be a competitive player on the global stage, effectively attracting investments and partnerships aimed at fueling international growth and enhancing service offerings.

The Rationale Behind the Deal

The acquisition of a majority stake in 24.7 by its founding management team, supported by Three Hills Capital Partners (THCP) as a minority partner, signifies a strategic move to accelerate the company's international expansion. THCP brings flexible financing solutions, both equity and debt, which align well with the company’s growth ambitions, particularly in Latin America where they aim to capitalize on emerging opportunities.

This partnership is expected to strengthen 24.7’s market position further while enabling the company to pursue additional acquisitions that complement their existing operations, thereby enhancing their service capabilities and geographic reach.

Information About the Investor

Three Hills Capital Partners (THCP) is a UK-based investment firm that specializes in partnering with management teams to provide tailored financing solutions. They focus on flexible capital structures that are less dilutive than traditional private equity options, enabling businesses to scale effectively while maintaining control.

THCP's investment philosophy emphasizes collaboration with management teams during critical growth phases, thereby aligning their expertise and resources to drive substantial value. Their proven track record in supporting businesses in various sectors positions them as a strategic ally for 24.7 as they embark on this new chapter of international expansion.

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The recent investment by Three Hills Capital Partners into TwentyFour Seven presents a compelling case for potential investors. The solid foundation established by the management team, coupled with THCP's focus on providing less dilutive capital, enhances the likelihood of sustained growth and innovation within the company. Not only does this deal position 24.7 to undertake ambitious international projects, but it also reflects a broader trend of management buyouts in high-potential industries.

The management team’s return to control after a successful period under Nexxus Iberia Private Equity illustrates a well-executed strategy that has significantly increased the company's scale and market presence. With their insights and hands-on approach, they are likely to navigate the challenges of international expansion effectively.

Moreover, the company's ongoing exploration of strategic acquisitions indicates a forward-looking vision that could further solidify their leadership in the advertising production space. As they expand their footprint in Latin America, the combination of local expertise and international perspectives can create unique opportunities for growth.

In conclusion, the investment from THCP into 24.7 heralds a potentially lucrative phase for both entities, making it an investment to watch as the company harnesses this collaboration to achieve its ambitious growth targets.

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