Concord Music Group Sold to Private Equity FirmMonday, March 25, 2013
Village Roadshow Entertainment Group on Monday said it had a deal to sell its eclectic Concord Music Group subsidiary to a Connecticut private equity firm for more than $115 million.
The Beverly Hills company said it was selling Concord to affiliates of Wood Creek Capital Management LLC of New Haven in order to concentrate on its core film business. The announcement did not disclose a price, but sources told Variety and Billboard.com that Concord, which has annual sales of about $90 million, was sold for between $115 million and $125 million. the deal is expected to close this week.
Concord, which had its roots as a jazz label, owns Rounder Records, Telarc and Hear Music, plus the Stax and Fantasy music catalogs. Its artist roster includes Paul McCartney, Paul Simon and Alison Krauss, and its catalog includes recordings by the likes of John Coltrane, Ray Charles and Tony Bennett. Concord artists won eight Grammy Awards last month.
The acquisition is being made on behalf of funds which Wood Creek advises and an investor group that includes members of Concord’s senior management and music industry veterans Steve Smith and Scott Pascucci. Concord Chief Executive Glen Barros will continue to lead the management team. Chairman Norman Lear, who with the late Hal Gaba bought the company in the mid-1990s, will become chairman emeritus.
Wood Creek is a New Haven affiliate of MassMutual Financial Group. It owns majority stakes in music publishing firm Bicycle Music and movie soundtrack recording label Varese Sarabande.
“Concord Music Group is a one of a kind company with an irreplaceable catalog and artist roster,” Wood Creek Chief Executive Brett D. Hellerman said in a statement. “As with our other portfolio companies, Wood Creek will be an active investor in Concord.”