The Getty family said Tuesday it will acquire Carlyle Group’s (CG) equity stake in Getty Images for cash and an ongoing financial interest in the company.
Terms of the deal weren’t disclosed, but Carlyle purchased just over 50% of Getty Images in 2012 for $3.3 billion from Hellman and Friedman. The transaction is expected to close by the end of the third quarter. The company has started refinancing its balance sheet including its existing senior secured credit agreement, which will take two to three months and may involve loans, senior notes and preferred equity.
Mark Getty, the co-founder of Getty Images who led the transaction on behalf of the family, said in a statement that he and his family are “thrilled” to regain control of the company.
“Getty Images is one of the world’s great media brands and the company has delivered a significant repositioning in the past few years, investing in its products and people to capitalize on favorable sector dynamics and build on its industry-leading position,” he said.
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Getty Images said it’s improved its competitive position through investments in the way it markets its products and services and in its underlying infrastructure including technology and product enhancements. Management will continue to focus on free cash flow generation to achieve “meaningful” deleveraging in the next five years.
Getty Images CEO Dawn Airey will become a non-executive director and Chief Operating Officer Craig Peters will become CEO. Interim Chief Financial Officer Rik Powell will become chief financial officer upon closing of the transaction.
Mark Getty will become chairman of the board, co-founder Jonathan Klein, the current chairman and company CEO for two decades, will stay on as deputy chairman and will retain his equity interest.
James Attwood Jr., the managing director of The Carlyle Group, said Getty Images is now well positioned to capitalize on market opportunities.
“We are pleased to retain an ongoing financial interest in the company’s future growth,” he said.
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