Adevinta's Subsidiary in Spain Faces Breakup Post Takeover
Deal News | Nov 11, 2024 | Aim Group
Adevinta, headquartered in Oslo, is reportedly preparing for a strategic breakup of its Spanish subsidiary following its recent acquisition by a consortium led by Blackstone and Permira. The move aims to generate a 100% return on capital investment within five years by making each marketplace within the subsidiary independent. This strategy involves potentially privatizing parts or even taking them public, aligning with analysis from AIM Group's Jonathan Turpin. Sources suggest that Fotocasa and Coches.net, key parts of the subsidiary, might become standalone entities, with Fotocasa already rebranded. Despite the strategic ambition, employee sentiment is notably discontented, highlighting poor communication and lack of tasks from management. Nevertheless, workload pressures have recently intensified, indicating preparations for asset sales with anticipated high profits.
Sectors
- Online Marketplaces
- Private Equity
Geography
- Spain – Adevinta's subsidiary in focus is based in Spain, where the potential breakup and employee dissatisfaction are occurring.
- Norway – Adevinta is headquartered in Oslo, Norway, linking this geography to the parent company's strategic decisions.
Industry
- Online Marketplaces – Adevinta's business is centered around online marketplaces such as Fotocasa and Coches.net, making this a primary industry involved in the article.
- Private Equity – Blackstone and Permira, private equity firms, have taken over Adevinta, focusing on maximizing investment return through strategic business maneuvers.
Financials
- 100% – The intended return on invested capital within five years for Adevinta's breakup strategy facilitated by its new owners.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Adevinta | Parent Company | Company | Oslo-based parent company preparing for a breakup of its Spanish subsidiary. |
| Adevinta Spain | Target Company | Company | The Spanish subsidiary potentially facing a breakup post acquisition. |
| Blackstone | Consortium Leader | Company | Part of the consortium that took over Adevinta and planning to restructure the Spanish unit. |
| Permira | Consortium Leader | Company | Part of the consortium alongside Blackstone leading the strategic breakup of Adevinta's Spanish operations. |
| Fotocasa | Real Estate Marketplace | Company | Part of Adevinta Spain potentially becoming an independent entity. |
| Coches.net | Auto Marketplace | Company | Another marketplace under Adevinta Spain that may become independent. |
| Santander Group | Owner of Rival Company | Company | Owner of rival auto marketplace Coches.com, distinguishing from Coches.net. |