H.I.G. Capital sells stake in OOH media company Eletromidia to Globo

H.I.G. Capital, a leading global alternative investment firm with $58 billion in capital under management, has announced the sale of a portion of its stake in Eletromidia, Brazil’s top out-of-home (OOH) media company, to Grupo Globo, Latin America’s prominent media conglomerate. Despite this sale, H.I.G. Capital will continue to be the largest shareholder in Eletromidia, signifying its long-term commitment to the company’s success.

Fernando Marques Oliveira, Managing Director and Head of H.I.G. Latin America, lauded the transaction as a milestone for H.I.G.’s robust partnership with Eletromidia. He emphasized that Grupo Globo’s investment not only reaffirms the value that H.I.G. has added to Eletromidia over its holding period but also presents fresh opportunities for the OOH leader to broaden its reach in the media market. “We are keen to collaborate with Globo to propel Eletromidia’s growth trajectory in the future,” Oliveira added.

Since coming under the umbrella of H.I.G. Capital, Eletromidia has metamorphosed from a mid-tier OOH company into Brazil’s market leader. The media firm has diversified into new OOH sectors, secured over 70 new contracts, digitalized its portfolio, and successfully acquired eight media companies. It notably became the first publicly traded media company in Brazil when it went public in February 2021, trading under the ticker ELMD3 on the Brazilian Stock Exchange.

Paulo Marinho, CEO of Grupo Globo, expressed enthusiasm over the acquisition, saying it brings Globo closer to a complementary segment of its advertising market. “We are impressed with Eletromidia’s digital transformation and believe there is strong synergy with Globo’s business portfolio,” Marinho remarked.

Alexandre Guerrero, CEO of Eletromidia, echoed similar sentiments, stating that Grupo Globo’s investment would act as a catalyst for Eletromidia’s future growth and further solidify its leadership in the OOH sector. “This transaction heralds an exciting new chapter for Eletromidia, and we are optimistic about the numerous growth opportunities on the horizon,” said Guerrero.

The deal serves as a significant development for all parties involved, setting the stage for future collaborative ventures and strengthening Eletromidia’s position in Brazil’s fast-evolving media landscape. It also highlights H.I.G. Capital’s successful investment strategy, emphasizing its ability to nurture and expand businesses in diverse sectors.