Carlyle Will Partner with Existing Investor Crestview Partners and NEP Management
OREANDA-NEWS. NEP Group Inc., Crestview Partners and The Carlyle Group announced today that Carlyle Global Partners – Carlyle’s long-duration private equity fund has made a significant minority investment in NEP alongside existing shareholders Crestview and NEP management. The investment closed on June 24, 2016, providing NEP with additional capital and resources to accelerate the company’s growth strategy as a diversified global outsourced services business supporting the broadcast and live events industries.
NEP serves the world’s leading content producers and owners, providing services vital to the broadcast of live sports and entertainment events. With the industry’s most talented and experienced engineering team and the most advanced technical solutions – including the largest fleet of remote production units and global production studios and more than 18,000 square meters of LED displays – NEP enables its clients to execute, deliver and display exceptional productions on any platform. NEP's global headquarters is located in Pittsburgh, Pennsylvania, and it has operations in 16 countries and the ability to service clients worldwide.
“We’re very excited to gain another world class partner in Carlyle,” said Kevin Rabbitt, CEO of NEP. “Carlyle Global Partners brings media industry expertise, a global network and long-term capital to support our business and worldwide growth strategy. In combination with Crestview, we now have two outstanding investors who share our commitment to innovation, client service and growing our global services platform.”
Funds managed by Crestview acquired NEP in December 2012 and will remain an investor in the company, along with Carlyle. Under Crestview’s ownership, NEP has expanded into 14 new countries and broadened its service offering to better support its clients.
“We are proud to continue our investment in NEP alongside Carlyle,” said Jeff Marcus, Partner and Co-head of Crestview’s media strategy. “We know Carlyle and their deal team well – they are an ideal partner for Crestview and NEP. We look forward to working collaboratively to realize NEP’s significant growth potential.”
“Together with management, we have transformed NEP into a diversified global outsourced services leader in the broadcast and live events space,” added Brian Cassidy, Crestview Partner and Co-head of the firm’s media strategy. “Carlyle’s capital and industry expertise will foster NEP’s continued expansion.”
Carlyle launched its longer-term private equity strategy, Carlyle Global Partners, in 2014 to pursue opportunities that leverage Carlyle’s expertise, resources and global platform in investments that benefit from longer hold periods and structural flexibility. NEP is the third investment in Carlyle’s Global Partners fund.
“NEP has all the hallmarks of a Carlyle Global Partners investment – clear market leadership, outstanding management, strong blue chip client relationships, a sustainable value proposition and long-term growth potential,” said Tyler Zachem, Managing Director and Co-head of Carlyle Global Partners. “We look forward to partnering with the NEP team and Crestview to support the company’s world class client service and the strategy to become a fully diversified global outsourced production services business.”
The previously announced acquisition of Broadcast Solutions Group is the first strategic expansion under the new ownership structure. With operations in Singapore, India, UAE and the UK, the addition of Broadcast Solutions expands NEP’s geographic reach into Asia while enhancing the company’s outside broadcast flypack capabilities worldwide.
Jones Day acted as legal advisors to NEP on the transaction. Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisors to Crestview on the transaction. Barclays and Morgan Stanley & Co. LLC acted as financial advisors to Crestview and NEP. Debevoise & Plimpton LLP acted as legal advisors to Carlyle on the transaction.