(from billboard.biz, March 25, 2013) In a deal, expected to close in a few days, Wood Creek Capital Management, a private equity firm based in New Haven Connecticut, will acquire Concord Music Group. Sources say Wood Creek is paying Concord’s parent company, Village Roadshow Entertainment Group, about $115-$125 million for the purchase. This deal will make Wood Creek one of the largest owners of independent music assets, behind Bertelsmann Music Group (BMG).
Concord’s artist roster includes Paul McCartney, Paul Simon, Alison Krauss, Chick Corea, James Taylor, Carole King, George Benson, Kenny G, Steve Martin, Ben Harper and Esperanza Spalding, while its music catalog includes records by John Coltrane, Creedence Clearwater Revival, Ray Charles, Miles Davis, Little Richard, Otis Redding, Thelonious Monk, Isaac Hayes, Ella Fitzgerald, and Tony Bennett.
As part of the deal, Glen Barros, Concord President and CEO, will remain with the label, heading up its management team. Village Roadshow Entertainment Group is agreeing to sell Concord in order to devote all of its resources and attention to its core film business.
The Wood Creek declined to provide details on how the purchase will be financed, but it is typical that the acquiring firm would use a combination of equity and debt at a ratio of at least 40%-50% equity, with the remaining funds raised with debt.
“Today, we affirm Concord’s status as a resourceful, vigorous independent music company,” Wood Creek CEO, Brett D. Hellerman said in a statement, “the value proposition to consumers, media and the creative community is clear: as Concord remains independent, the artist and music wins.”