H.I.G. Europe made an offer to acquire 75% stake in Lagardère Sports and Entertainment from Lagardere SA (ENXTPA:MMB) for approximately €110 million on December 16, 2019. H.I.G. Europe entered into a definitive agreement to acquire 75% stake in Lagardère Sports and Entertainment on February 20, 2020. The consideration includes €55 million in net cash receivable subject to various time scales and conditions, and €55 million in liabilities (pension obligations and non-controlling interests).

The estimated €55 million impact on net cash breaks down as €22.5 million receivable on the closing of the transaction, €63 million in the form of a vendor loan reimbursable in line with cash receipts from the Asian Football Confederation, €35 million in the form of a vendor loan reimbursable on December 31, 2025 (or earlier, in the event of a change of control) and €(66) million in cash deconsolidated, as estimated for the expected closing date of the transaction. Upon completion, Lagardere SA will hold 24.9% stake. The company will be led by a new Chief Executive Officer, Stefan Felsing.

The transaction is subject to the approval of antitrust authorities. As on March 13, 2020, the European Commission has allowed the transaction. The transaction is expected to complete before the end of the first quarter of 2020.

Jost Hartmann of Proventis Partners GmbH acted as financial advisor to H.I.G. Europe. Michael Haidinger, Christian Ruoff, Katrin Gabner, Florent Mazeron, Cyril Valentin, Christel Cacioppo of Freshfields Bruckhaus Deringer LLP acted as legal advisor to H.I.G. Capital. Annette Péron and Faustine Viala of Willkie Farr & Gallagher LLP acted as legal advisor for Lagardère Sports and Entertainment.