3i, a world leader in private equity and venture capital, has sealed an agreement to purchase 40% of the Boomerang TV group, an independent producer of audiovisual content specialised in the creation of new entertainment and fiction formulas for television.

The deal, valued at €36.4 million, has been structured as a combined share purchase and capital increase to support the company’s ambitious growth plan, which calls for tripling its size over the next five years.

Under the terms of the agreement, 60% of the shares, as well as the day-today running of the company, will remain in the hands of the founding partners, who also manage the firm: Pedro Ricote, Pepe Abril, José Manuel Lorenzo, Enrique Cerezo and Juan José Díaz.

Boomerang TV, which has been valued at €91 million, is currently one of the flagship producers in the Spanish audiovisual market. Founded in 1998, the company focuses on the production of television programmes for both nationwide broadcasters and stations from autonomous regions.

Pedro Ricote, CEO of Boomerang TV, expressed his satisfaction with the qualitative leap facilitated by the deal: “The agreement with 3i turns Boomerang into a major player in the Spanish audiovisual sector, well beyond its original scope as a producer.” Ricote highlighted the fact that the entire process was marked by an excellent relationship with 3i: “From the very first, we have been speaking the same language and we have fully understood the role that each of us has to play in this project.”

3i has a 50 years track-record as an investor in media companies thanks to over 35 deals undertaken in this sector worldwide. The list includes Sparrowhawk Media (a pay-per-view TV company) in the UK, Boxer (a digital TV broadcaster) in Sweden and Nimbus Communications (an independent media and entertainment group) in India.

3i will support the management team to develop the expansion plan and contribute value through the expertise of its London media team and its vast array of international contacts. 

According to 3i Spain Managing Director Maite Ballester, “what most impressed us about Boomerang TV is the fact that it is a leading independent producer with a stellar track-record and a significant ability to respond to market demand.  Furthermore, the content market is a sector which we know well and which still has room for growth in Spain.  We plan to help grow Boomerang through acquisitions and to secure its greater penetration into digital television. ”