Nexxus Iberia sells its majority stake in TwentyFour Seven («24.7») to the management team and Three Hills Capital Partners

• The management team will take a majority stake in the Group whilst Three Hills Capital Partners (“THCP”) joins the Group as a new minority shareholder to drive growth by providing flexible capital solutions

• The company, a leader in the production high-profile advertising spots for international brands in Iberia, embarks on a new phase of international expansion focusing on Latin America and new complementary acquisitions (M&A)

Madrid, 1 August 2024. The management (and founding) team of TwentyFour Seven («24.7») – led by Ivo Van Vollenhoven (CEO), Álvaro Weber (CSO), and Gordon Mackinnon (CMO) – has regained control of the leading company in both Spain and Portugal of high-profile advertising spots for international brands. The team acquired a majority stake with the exit of Nexxus Iberia Private Equity, a Spanish private equity firm led by Maite Ballester, Pablo Gallo, and Alejandro Diazayas. Nexxus Iberia took control of the Group in 2019 and, during its investment period as the principal shareholder, the company has quadrupled in size, with significant impacts on sales and EBITDA.

With this transaction, 24.7 begins a new growth phase by partnering with the British firm Three Hills Capital Partners (THCP), which has joined the company as a minority shareholder and new strategic partner. In this new phase, THCP will provide flexible financing solutions (equity and debt) to support 24.7’s growth and drive its international expansion, with a clear focus on Latin America. THCP invests in management teams that require tailored financing structures, which are less dilutive than traditional private equity, with the potential to drive and scale their businesses.

Established in 2004, 24.7 is the leading company in Iberia for producing high-profile advertising spots for international brands and is a world leader in audiovisual production services for international production companies, advertising agencies, and brands. The company has the most extensive network of offices in Iberia, with locations in Madrid, Barcelona, Palma de Mallorca, and Lisbon. Spain represents 75% of the production company’s turnover. It also has a presence in Chile, Argentina, the Dominican Republic, Poland, and Lithuania. The Group is currently advancing in two acquisition processes, which are expected to drive its international expansion and integrate two new companies during 2024. More information can be found at https://twentyfoursevengroup.xyz.

Ivo Van Vollenhoven, co-founder and Chairman of 24.7, and Álvaro Weber (CSO), stated that «our strategic partnership with Nexxus Iberia has been a success. We appreciate the team’s trust and support over these years and look forward to working with Three Hills Capital Partners. This new alliance is another step in our vision to accelerate our international expansion plans and continue to strengthen 24.7 with unique global capabilities.»

The divestment of Nexxus Iberia Private Equity, which entered 24.7 in 2019 through its first fund, Nexxus Iberia Private Equity Fund I, marks an important milestone for the Spanish private equity manager. Since Nexxus Iberia joined the shareholding, the Group has executed an ambitious internationalisation plan, which has resulted in entry into new regions in Europe and the Americas and the integration of four companies: Ice Cream, Smile, Intricate Studio, and Lee Films. During this period, 24.7 also absorbed the production companies Limon Studios and Ulala Films and created the companies Stament VFX, a post-production studio and Artificial Intelligence (AI) laboratory, and the film production company Anima Stillking.

Alejandro Diazayas and Javier Onieva, Partners at Nexxus Iberia Private Equity, have expressed their satisfaction with the success of this partnership for the private equity manager. «We are very proud to have been part of the design of an ambitious value creation plan for 24/7 and to have supported Ivo and his team in their development. Our vision as a manager has materialised in leaving behind a great company with a solid foundation for an exceptional future. We have enjoyed the process and forged lasting friendships with our partners. We wish them all the best in this new phase, where we are sure the company will continue to strengthen and consolidate its position as a global leader.»

In this regard, Pablo Vélez, Partner at Three Hills Capital Partners (THCP), highlighted that «we are very excited about this new investment from our fund in Spain, which perfectly fits our strategy of supporting internationally focused companies and management teams that have led the project from its inception with flexible capital solutions.»

In the transaction, Nexxus Iberia was advised by Deloitte (Financial Due Diligence), AZ Capital (M&A), Grant Thornton and Pinsent Masons (Legal), and CIL (Commercial Due Diligence). Three Hills Capital Partners was assisted by KPMG (Due Diligence and M&A), Latham & Watkins (Legal), and LEK (Commercial Due Diligence).