H.I.G. Capital Announces the Sale of a Minority Stake in Eletromidia to Grupo Globo
RIO DE JANEIRO – August 30, 2023 – H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $58 billion of capital under management, is pleased to announce that one of its affiliates has sold a portion of its stake in Eletromidia (“Eletromidia” or the “Company”), the leading out-of-home (“OOH”) media company in Brazil, to Grupo Globo (“Globo”), a leading media conglomerate in Latin America. H.I.G. remains as the largest shareholder in Eletromidia.
In announcing the transaction, Fernando Marques Oliveira, Managing Director and Head of H.I.G. Latin America commented, “Globo’s investment in Eletromidia is an important milestone in H.I.G.’s successful partnership with the Company. It highlights the value created during H.I.G.’s holding period and opens new opportunities for the Company to further expand its reach within the media market. We look forward to collaborating with Globo to continue supporting Eletromidia in the future”.
Since H.I.G.’s acquisition, Eletromidia has transformed from a midsize OOH player in Brazil to the market leader, expanding into several new OOH segments, winning over 70 new contracts with site owners, digitalizing its existing portfolio, and acquiring eight media companies. In February 2021, Eletromidia successfully went public on the Brazilian Stock Exchange under the ticker ELMD3, becoming the first publicly traded media company in Brazil.
Paulo Marinho, Globo’s CEO, commented, “This acquisition takes Globo closer to a highly complementary segment of its advertising market. We are impressed with the digitalization evolution which Eletromidia has undergone. The company is well positioned and has a strong synergy with Globo’s business portfolio”.
Alexandre Guerrero, Eletromidia’s CEO, added, “We are confident that Grupo Globo’s investment will further accelerate Eletromidia’s growth trajectory and solidify its leadership in the OOH industry. The transaction begins an exciting new chapter in the Company’s history, and we are thrilled about the growth opportunities ahead”.
Founded in 1993 and headquartered in São Paulo, Eletromidia is the leading player in the Brazilian out-of-home media market, with unique presence in all the industry’s key verticals – transportation, elevators, malls, airports, and streets. As of July 2023, the Company operates over 60 thousand panels across 20 Brazilian states. For more information, please refer to the Company’s Investor Relations website at https://ri.eletromidia.com.br/
The largest media company in Latin America, Globo brings together open TV and pay TV channels, streaming and digital products, and reaches almost 100 million people in Brazil every day. Thanks to its extensive network of associated subsidiaries throughout the country, it can be local, regional, and national at the same time. It offers the audience a complete viewing experience, which combines the ability to produce high-quality content with technological expertise, with distribution on several platforms such as TV Globo, a broadcast TV channel; its 26 pay TV channels; its SVOD and streaming platform Globoplay; and digital products such as news (g1), sports (ge.globo) and entertainment (gshow), among others.
About H.I.G. Capital
H.I.G. is a leading global alternative investment firm with $58 billion of capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro, and São Paulo, H.I.G. specializes in providing both debt and equity capital to middle market companies, utilizing a flexible and operationally focused/ value-added approach:
- H.I.G.’s equity funds invest in management buyouts, recapitalizations, and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
- H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. also manages a publicly traded BDC, WhiteHorse Finance
- H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.
- H.I.G. Infrastructure focuses on making value-add and core plus investments in the infrastructure sector.
Since its founding in 1993, H.I.G. has invested in and managed more than 400 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $52 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.