Pacha Ibiza is up for sale

Perhaps one of Ibiza’s, if not the world’s most iconic clubbing brands and venues, Pacha Ibiza is up for sale. The historic nightclub, founded in 1973, was sold five years ago by its originator Ricardo Urgell but is now available for purchase again.

But how much does one of the island’s most renowned and influential clubs cost? €500 million, to be precise. 

As reported by Spanish newspaper El Confidencial, Trilantic, the venture capital fund that has owned Universo Pachá since 2017, has decided to put the leisure group up for sale after recording record revenue this summer across its Ibiza and Mykonos venues.

Aside from the coveted Pacha Ibiza venue, Universo Pachá is also at the helm of both Lio venues. Sources close to the ongoing sale say that Lio Ibiza and Lio Mykonos are responsible for the lion’s share of the group’s profits, most likely due to their luxury appeal and high-end clientele. 

Based on financial estimations forecast as part of the sale, the company based in the Balearic Islands, but controlled from Luxembourg by Trilantic through the instrumental company Mediterranean Sky International, can reach a value that ranges between 400 and 500 million euros.  

What’s more, Pacha’s appeal comes from its expansion plans. The company has signed contracts to establish itself in London, Miami and Dubai. They also have plans to open other luxury clubs in Formentera and Marbella. All this coming to fruition will see the group virtually double in size, making it one of the largest operating structures within global nightlife. 

The ‘private equity’ controls 87% of Universo Pachá, along with the Spanish funds MCH and GPF Capital, which have minority stakes within this package. Another 10% is in the hands of the founding family, the Urgells, who obtained capital gains in the initial sale in 2017. The remaining 3% belongs to Manuel Gari, a former Lehman banker and now a Bank of America advisor, who also received a suggestive commission for the original transaction.

Depending on the interest they receive during the process, Trilantic will sell all of its participation or continue in the capital with a minority partner accompanying it in the new strategic plan. 

Could we be about to see the birth of the biggest clubbing powerhouse in the history of dance music? It certainly looks to be a real possibility!