- Buyout firm Trilantic Europe is doing due diligence on Pacha
- Dance club may be valued at a few hundred million euros
Private equity fund Trilantic Europe is considering an offer for Spanish dance-club operator Pacha Group, according to people familiar with the matter.
A sale of closely held Pacha, which runs clubs on the Spanish island of Ibiza, as well as Germany, Poland, Australia, China and Brazil, could fetch a few hundred million euros, the people said, asking not to be identified because the deliberations are private. Trilantic Europe is working with advisers as it carries out due diligence, the people said.
No final decision has been made and Trilantic Europe could decide against a purchase of Pacha, which may also draw interest from other bidders, the people said.
Pacha has attracted interest from potential partners throughout its history, though the company isn’t proactively seeking a sale, a spokesman for the Spanish firm said. A representative for Trilantic Europe declined to comment.
Pacha, which traces its roots back to the 1960s when it opened its first club in the Catalonian city of Sitges, has been expanding geographically over the years and diversifying into other leisure and entertainment businesses such as hotels, restaurants and fashion, according to its website. French disc jockeys David Guetta and Martin Solveig make regular appearances and a standard ticket may cost 52 euros to 130 euros, according to its website.
Buyout firm Trilantic Europe has previously invested in other Spanish firms, including telecommunications company Euskaltel SA and train maker Patentes Talgo SA, both of which carried out initial public offerings last year. The private equity firm was founded in 2009 by five founding partners, all of the whom worked together at Lehman Brothers, according to its website.
Trilantic Europe targets companies with enterprise values from 100 million euros to 1 billion euros, the company said on its website. Its primary focus areas in Europe include consumer, leisure, telecommunications, media, technology, industrials, business services and health care.