Private equity eyes Ibiza club owner

New York-headquartered international private equity fund Trilantic Capital Partners is considering an offer for Spanish dance-club operator Pacha Group, according to sources.

A sale of closely held Pacha could fetch a few hundred million euro, the sources said. The company runs clubs on the Spanish island of Ibiza, as well as in Germany, Poland, Australia, China, and Brazil.

Trilantic is working with advisers as it carries out due diligence, they added.

No final decision has been made and Trilantic 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 Trilantic representative did not 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 DJs David Guetta and Martin Solveig make regular appearances and a standard ticket may cost from €52 to €130, according to its website.

Buyout firm Trilantic has previously invested in other Spanish firms, including telecoms company Euskaltel and train maker Patentes Talgo. Both of those companies carried out initial public offerings last year.

* Bloomberg