Unvision to Be Acquired by Madison Dearborn Partners, Providence Equity Partners, Texas Pacific Group, Thomas H. Lee Partners and Saban Capital Group for $13.7 Billion
Fastest- Growing Media Company in the U.S. Has Leading Position among Hispanic Audiences
June 27, 2006, Los Angeles - Univision Communications Inc. (NYSE:UVN), the leading Spanish-language media company in the U.S., and a group including Madison Dearborn Partners, Providence Equity Partners, Texas Pacific Group, Thomas H. Lee Partners and Saban Capital Group, today announced they have signed a definitive agreement under which the group will acquire Univision for $36.25 per share in cash. The transaction is valued at approximately $13.7 billion, including the assumption of $1.4 billion in debt.
A. Jerrold Perenchio, Chairman, President and Chief Executive Officer of Univision, said, "I am delighted to announce this blockbuster transaction, which provides a unique opportunity to deliver substantial current value to our shareholders, while establishing a partnership for Univision and its employees with five of the world's preeminent investment firms. This blue-chip group brings to Univision in-depth knowledge of the rapidly changing media landscape and an exceptional track record of supporting growth and enhancing value. The outstanding cash flow multiple our shareholders will receive reflects the extraordinary growth of the Hispanic population, Univision's unique bond with its community and our ability to deliver tremendous audiences to our mainstream advertising partners. I am proud of all the Univision employees who have, along with our partners Televisa and Venevision, contributed to the success and growth of this great company. Univision has a very bright future."
Univision is the nation's fastest-growing media company. Serving the burgeoning Hispanic community - which is growing five times faster than the general population -- Univision has industry-leading market share in its television, radio, music and online businesses. With an unmatched array of assets and a unique connection with Hispanic Americans, Univision is ideally positioned to reap additional benefits from the continued rapid growth of the Hispanic population and increased advertising in Spanish-language media.
Univision's assets include the Univision Network, which ranks as the #1 Spanish-language television network and fifth largest network in the country overall regardless of language. Its sister broadcast network TeleFutura ranks as the #2 Spanish-language broadcast network in key dayparts and demographics, and its cable network Galavision has been the premier Spanish-language cable network for the past decade. Univision's television group is the second largest station group in the U.S. In addition, Univision's radio stations make up the nation's leading Spanish-language radio group, Univision Music Group is the #1 Latin music company in the U.S., and Univision.com attracts an average of nearly 9 million monthly unique visitors, making it by far the #1 internet portal among Hispanics in the country.
The acquiring group said in a joint statement, "Univision is truly a one-of-a-kind property. It is an outstanding media brand with exceptional positions in the fastest-growing markets in the country, world-class assets, strong management, popular programming and unmatched ratings. This transaction presents a unique opportunity to contribute to and participate in the continuing growth of the clear leader in Spanish-language media and to further the company's commitment to serving the Hispanic community. Univision has tremendous long-term growth opportunities in each of its businesses and we look forward to working together to build on its success and enhance its value in the years ahead."
The merger agreement has been approved by the Board of Directors of Univision and is not contingent on financing. The transaction is subject to the approval of Univision shareholders, regulatory approvals and customary closing conditions, and is expected to close in the Spring of 2007.
Credit Suisse Securities (USA) LLC and Deutsche Bank as well as Bank of America and Wachovia are acting as financial advisors to the buying group. Weil, Gotshal & Manges LLP and Hogan & Hartson LLP are serving as its legal advisors. UBS Investment Bank is acting as financial advisor to Univision and Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to Univision.
Univision Communications Inc.
Univision Communications Inc. is the premier Spanish-language media company in the United States. Its operations include Univision Network, the most-watched Spanish-language broadcast television network in the U.S. reaching 98% of U.S. Hispanic Households; TeleFutura Network, a general-interest Spanish-language broadcast television network, which was launched in 2002 and now reaches 86% of U.S. Hispanic Households; Galavision, the country's leading Spanish-language cable network; Univision Television Group, which owns and operates 62 television stations in major U.S. Hispanic markets and Puerto Rico; Univision Radio, the leading Spanish-language radio group which owns and/or operates 69 radio stations in 16 of the top 25 U.S. Hispanic markets and 4 stations in Puerto Rico; Univision Music Group, which includes Univision Records, Fonovisa Records, La Calle Records and a 50% interest in Mexico-based Disa Records labels as well as Fonomusic and America Musical Publishing companies; and Univision Online, the premier Spanish-language Internet destination in the U.S. located at www.univision.com. Univision Communications also has a 50% interest in TuTv, a joint venture formed to broadcast Televisa's pay television channels in the U.S., and a non-voting 14.9% interest in Entravision Communications Corporation, a public Spanish-language media company. Univision Communications is headquartered in Los Angeles with television network operations in Miami and television and radio stations and sales offices in major cities throughout the United States. For more information, please visit www.univision.net.
Madison Dearborn Partners, LLC
Madison Dearborn Partners, based in Chicago, is one of the largest and most experienced private equity investment firms in the world. MDP has more than $14 billion of equity capital under management and makes new investments through its most recent fund, Madison Dearborn Capital Partners V, a $6.5 billion investment fund raised in 2006. MDP focuses on management buyout transactions and other private equity investments across a broad spectrum of industries, including basic industries, communications, consumer, financial services, and health care. For more information, please visit the MDP website at www.mdcp.com.
Providence Equity Partners Inc.
Providence Equity Partners Inc. is a global private investment firm specializing in equity investments in media and entertainment, communications and information companies around the world. The principals of Providence Equity manage funds with over $9 billion in equity commitments and have invested in more than 80 companies operating in over 20 countries since the firm's inception in 1990. Providence Equity is headquartered in Providence, Rhode Island and also has offices in New York and London.
Texas Pacific Group
Texas Pacific Group (www.texaspacificgroup.com), founded in 1992 and based in San Francisco, London and Fort Worth, Texas, is a private investment partnership managing over $30 billion in assets. TPG has extensive experience with public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures, and restructurings. TPG seeks to invest in world-class franchises across a range of industries.
Thomas H. Lee Partners
Thomas H. Lee Partners is one of the oldest and most successful private equity investment firms in the U.S. The firm identifies and acquires substantial ownership positions in growth companies through leveraged acquisitions, recapitalizations and direct investments. Since its founding in 1974, it has invested over $10 billion of equity in over 100 businesses, built companies of lasting value, and generated superior returns for its investors and operating partners.
Saban Capital Group, Inc.
Saban Capital Group, Inc. is a private investment firm specializing in the media and entertainment industries. Based in Los Angeles, SCG was established in 2001 by Haim Saban, founder of Saban Entertainment, a global television broadcasting, production, distribution, merchandising and music company that was sold to the Walt Disney Corporation in 2001 in a $5.2 billion transaction. The firm makes both controlling and minority investments in public and private companies throughout the world, including in Germany's biggest television group, Israel's leading broadcasting network and Israel's national phone company, and adds strategic value through its established relationships and industry experience. In addition, SCG owns and operates a music company, Saban Music Group, which operates an independent music-publishing company.