Photo Credit: Superstruct Entertainment
Global investment firm KKR acquires concert giant Superstruct Entertainment from Providence Equity Partners in a reported $1.4 billion deal.
KKR, a leading global investment firm, has announced the acquisition of European live entertainment giant Superstruct Entertainment from premier private equity firm Providence Equity Partners in a reported $1.4 billion (€1.3 billion) deal. Superstruct owns and operates over 80 music festivals across 10 countries in Europe and Australia.
Since its establishment in 2017 by Providence, Superstruct has grown organically and through acquisitions into a premier live entertainment group with a well-diversified portfolio across music genres and geographies. That portfolio includes some of Europe’s most high-quality festivals, including Wacken Open Air, Defqon.1, Parookaville, Sziget, Tinderbox, Boardmasters, and Sónar.
KKR will support Superstruct in its next phase of development as one of the key players in a highly fragmented sector that continues to grow, expand, and professionalize, while “preserving the creative and cultural DNA of the company.” As part of the transaction, Providence has an option to invest $267 million (€250 million) into Superstruct.
“We are delighted to partner with Roderik Schlösser, James Barton, and the team at Superstruct who have established themselves as a leader in delivering unparalleled live music experiences globally,” said Philipp Freise, Partner and Co-Head of European Private Equity, and Franziska Kayser, Partner at KKR. “With a robust foundation as a top-tier live entertainment platform, we see significant growth opportunities ahead for Superstruct.”
They continue: “Drawing on our strong partnership approach and experience in the digital entertainment and ticketing space, such as BMG, ProSiebenSat1, GetYourGuide, and Trainline, as well as KKR’s global resources and extensive network, we will support the company and its entrepreneurial team to bring their compelling portfolio of live event formats to a wider audience and drive further growth.”
“We are incredibly proud of the rapid growth and success Superstruct has achieved since its inception. With Providence’s backing, Superstruct has become a truly exceptional live entertainment company,” said Andrew Tisdale, Senior Managing Director, and Daniel Swicky, Director at Providence Equity Partners. “In particular, we believe the company’s resilience and emergence from the global pandemic as a stronger business is a testament to the entrepreneurial spirit of Roderik Schlösser, James Barton, and the impressive management team. We are confident that with KKR’s support, Superstruct will continue to thrive.”
“The founding vision for Superstruct was to create a natural home for successful entrepreneurs, creative visionaries, and business-minded professionals in live entertainment,” concluded Roderik Schlösser, CEO, and James Barton, Chairman of Superstruct Entertainment. “We wanted to create a network of influence setting the standards for live experiences.”
“Through our development, we are a leader in the professionalism of this industry, enabling our dedicated teams to excel in a collaborative and inspiring environment and create and deliver best-in-class events for millions of fans. We are proud to have secured the backing of KKR, whose expertise and network will strengthen our ability to scale and innovate in the vibrant experiential economy,” they conclude. “We would like to thank Andrew Tisdale, Daniel Zwicky, and the team at Providence for their outstanding support. Their belief in Superstruct has been fundamental to our success.”
Goldman Sachs is acting as financial advisor, while Kirkland & Ellis serve as legal advisor to KKR. Providence is being advised by HSBC and LionTree as joint financial advisors, and White & Case as legal advisor.
Source : DigitalMusicNews