Canadian DVD and CD wholesaler Row Entertainment on June 1 said it had completed an $80 million deal to acquire U.S. independent music and video distributor Koch Entertainment.
TORONTO (The Hollywood Reporter) -- Canadian DVD and CD wholesaler Row Entertainment on June 1 said it had completed an $80 million deal to acquire U.S. independent music and video distributor Koch Entertainment.
Michael Koch, founder and CEO of U.S.-based company, will remain at the helm after receiving $55 million in cash and $20 million in stock, in addition to $5 million in debt assumption.
Toronto-based Row Entertainment, which also owns CD Plus, the Canadian specialty music retailer, first announced the acquisition of Koch on May 10 as part of a U.S. expansion.
The newly merged Row-Koch entity will operate a record and music publishing business, a video label, and music and video distribution companies across North America.
"The Koch acquisition will enhance our position as one of the leading suppliers of home entertainment in Canada and the U.S. market," Row CEO Darren Throop said in a statement.
Besides Michael Koch, various senior executives of Koch divisions will also remain in place. These include Koch Records president Bob Frank; Michael Rosenberg, president of Koch Entertainment Distribution and Koch Vision; Dominique Zgarka, president of Koch Entertainment Canada; and Alan Grunblatt, executive VP of Koch Records.
To fund the Koch acquisition, Row Entertainment recently completed a public offering of 7 million units of the Row Entertainment Income Fund, priced at CAN$10.00 ($8.00) per unit, and increased its bank credit facility.