We’ve been wondering when the deal would finally close and today we got the answer, although it looks like there might still be some negotiating going on behind the scenes.
Ironman says that Advance, a private, family-held business that includes Condé Nast amongst its portfolio, has completed its acquisition of the Ironman Group, “the world’s largest mass participation sports platform,” according to a release.
Orkila Capital was also a partner with Advance in the transaction. Earlier this year we interviewed Orkila’s managing partner, Jesse Dubey, who was the managing director of Province Equity Partners when it bought Ironman in 2008.
While the sale was originally announced to be US$730 million, according to a report posted on the Wanda Sports Group site, “net proceeds are expected to be in the range of US$380 million (which reflects deductions for existing indebtedness and transaction expenses, as well as the Company’s expectations as to the ultimate outcome of an ongoing post-closing purchase price adjustment process).”
Based on that statement, it would appear that the US$350 million reduction is due to debt, investment fees and ongoing re-negotiations.
It would appear that Wanda Sports Group was anxious to unload The Ironman Group – Wanda reportedly spent $850 million for the company and made additional investments in other events like the Rock ‘n Roll Marathon Series. Last year Ironman completed a US initial public offering (IPO) which raised $190.4 million, far short of the $500 million goal. According to Bloomberg it was the “second-worst debut on a U.S. exchange” in 2019.