Three Hills completes new investment in TwentyFour Seven Group, a leading production services company in Iberia

Three Hills (the “Firm”) is pleased to announce the successful closing of its investment in leading production services company TwentyFour Seven Group (“TwentyFour Seven”, “24.7” or the “Company”). The transaction facilitates a management buyout and bolsters 24.7’s ability to pursue further international expansion via M&A. It sees the founders and senior management team, including Ivo Van Vollenhoven, Álvaro Weber and Gordon Mackinnon, regain control of the company following a five-year investment from Spanish private equity firm Nexxus Iberia.   

This is the eighth transaction in Three Hills Capital Solutions IV (“THCS IV”) which closed in October 2022 at its hard cap of just over €1 billion. It also marks the second transaction for the Firm in Spain this year, following the closing of an investment in software and AgriFood technology specialist Hispatec via Three Hills’ dedicated impact strategy.

Established in 2004 and headquartered in Madrid, TwentyFour Seven is a leading audiovisual production services company focused on premium advertising campaigns for global blue-chip brands, such as LVMH, Nike and Adidas. The majority of 24.7’s clients are US- and UK-based, many of which are household names. The company offers high-quality production services, full production, and post-production services with best-in-class execution and exceptional senior talent leading to a win rate over double that of the broader market.

The Company boasts a strong international presence with “boots on the ground” in seven countries. Iberia serves as 24.7’s primary hub from which it covers a diversified base of global clients, with a presence in Madrid, Barcelona, Palma de Mallorca and Lisbon. It is also present in Chile, Argentina, Dominican Republic, Poland and Lithuania.

Three Hills favours industries that are ripe for consolidation and experiencing strong tailwinds. 24.7 operates in the growing, and highly fragmented, €2.8 billion production services market. The market for production services is expected to grow internationally, with high single-digit growth rates forecasted. 24.7 remains particularly well-placed in the premium segment given its defensible scale advantages in geography, services and systems.

Three Hills’ investment in 24.7 facilitates management regaining control for the next phase of growth and will bolster further international expansion and vertical integration via M&A. 24.7 has a proven track record of organic and inorganic growth, having diversified both geographically and into new production services verticals for global brands and marketing agencies. Building on the success of the 2022 acquisition of Smile, the Company is currently advancing in two further acquisition processes.

Three Hills views this transaction as an opportunity to partner on a focused growth journey with a best-in-class management team that is both highly experienced and committed to the next phase of growth. Three Hills’ signature preferred capital investing strategy remains attractive for management teams seeking to remain in control while raising expansion capital, with over half of the firm’s transactions to date facilitating shareholder reorganisations in businesses with strong growth ambitions.

Ivo Van Vollenhoven, Founder and leading shareholder of TwentyFour Seven,shared, “As we embark on our next chapter at TwentyFour Seven, it was critical to bring on a partner who can provide more than just capital. The team at Three Hills offers a unique proposition tailor-made for management teams with ambitious plans. We look forward to partnering with Three Hills in the years to come, as we continue to deliver spectacular production services for the world’s leading agencies and brands.”

Pablo Vélez, Partner at Three Hills, commented, “Partnering with exceptional management teams focused on growth is at the heart of our strategy at Three Hills. Over the last two decades, TwentyFour Seven has cemented its reputation as a category leader with remarkable execution and talent. This next phase of growth, marked by continued innovation in its services offering and international expansion, will be amplified by a committed management team regaining control of their business. We are proud to be able to support TwentyFour Seven and its team on the road ahead.”