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Nazca sells Sistemas to HIG Capital

Nazca sells Sistemas to HIG Capital

On the 21st of December NAZCA FUND II signed the sale of its shareholding in Sistemas e Imagen Publicidad (“Sistemas”) to the international private equity fund HIG Capital.

Nazca acquired 86% of Sistemas in July 2007 through a BIMBO with Jesús Castillo and the management team and founder of the company.

Sistemas is the leading company in Catalonia in the outdoor advertising sector, specialised in the large format segment, with a large inventory of over 3,700 advertising mediums and presence in the majority of the autonomous communities, with a differentiated business model based mainly on long-term advertising (the majority of invoicing comes from clients who contract the advertising mediums for periods of over 1 year).

Since Nazca’s investment, the company accelerated its organic growth, complemented by the acquisition of two local operators (Mundex, in the central region of the Iberian Peninsula, and Publicantabria, in the northern region), registering strong growth in the number of advertising mediums (rising from 2,535 in July 2007 to 3,726 in December 2015) to increase its presence in other regions outside of Catalonia (in 2007, 88% of the mediums were in Catalonia, compared to 63% in December 2015).

Nazca obtained positive returns on investment in Sistemas despite there having been one of the largest crises in the advertising sector, with an accumulated fall of around 40% in invoicing between the 2008 and 2014 financial years.

The buyer, HIG Capital, through Sistemas itself, acquired 100% of the company Impursa, S.A., a specialist in outdoor advertising (urban furniture) with the intention of implementing an ambitious plan of consolidation of the sector and consolidating the largest independent outdoor advertising group in the Iberian Peninsula.