Pegasus Capital acquires Musimundo

Pegasus Capital acquired 100% of Musimundo, the main Argentine retailer for music records. The deal was announced on July 11 and closed on July 17, 2003. The transaction involves an investment of US$ 8 million in Musimundo.

Founded in 1952, Musimundo is the largest record retailer and other entertainment products (electronic, computer products and books) in Argentina with 700 employees and 57 outlets around the country. Its revenues for the last year totaled AR$ 70 million (approx. US$ 29 million) and its sales of compact disks and cassettes represent 55% of the Argentine record market. Musimundo had filed for chapter 11 proceedings in Argentina in 2001, after having declared the default of its AR$ 196 million (approx. US$ 70 million) debt. The deal opens new horizons for all participants in the record industry, from the recording companies to music fans. As Pegasus Capital managers put it: "the deal is an opportunity to give the country back its most popular record store. With the appropriate investments we want to make out of Musimundo an example of quality, performance and service in the entertainment products industry".

Pegasus Capital managers are Mario Quintana, Woods Staton, Michael Chu, Dirk Donath and Richard Gluzman. All of them have extensive combined business experience in USA, Europe and Latin America, including capital investments, private equity, M&A and management.

Pegasus Capital was assisted by Allende & Brea through partners Gustavo Enrique Garrido and David Gurfinkel and associates Valeriano Guevara Lynch, Dante Marcelo Ramos, Cristian Fox and Paula Azulay.

The bank consortium headed by Citibank was assisted by Estudio Beccar Varela through partners Javier Luis Magnasco and Mariano Hazaña and associate María Paula Terrel and in-house counsels Hernán Camarero and Pedro Castro Nevarez.