AEG Live and Transom Capital Group have announced that their entertainment licensing and merchandising companies, BandMerch and Cinder Block, respectively, will merge into a standalone company.
The new Los Angeles-based entity, which will continue as BandMerch under the direction of president Joseph Bongiovi,will surely pose further competition with the the Live Nation Merchandise and Universal Music’s Bravado. BandMerch be the home to artists including the Who, Black Veil Brides, Asking Alexandria, Rise Against, All Time Low, Coheed and Cambria, Death Cab for Cutie, Misfits, Postal Service, the National and Flogging Molly.
Cinder Block CEO Jason Greene will continue in his capacity at the new company.
BandMerch will maintain a strategic relationship with AEG Live. Terms of the deal with not disclosed.
"We're extremely excited about this transaction as it pairs two like-minded companies who are focused on bringing the highest level of customer service to our clients," Bongiovi said in a statement. "I believe that this combination puts us in a unique place in the market relative to our less sophisticated competitors and, for clients who want a hands-on, full service merchandising strategy, I think we will be the only place to call home."
Greene added, “What we're seeing is that clients want a real, multi-channel sales strategy that brings incremental value to the table. The combination of Cinder Block and BandMerch positions us as the leading alternative for artists who are seeking a high-touch, high-service, high-quality experience from their merchandise partner. With our stellar set of resources we will continue to outwork, out-compete and over-deliver on results, providing a superior artistic and operational experience for our artists and their management. After this merger we will boast the single largest mid-tier retail roster in the world, a global touring footprint and leading-edge e-commerce capabilities.”
In 2009, Los Angeles-based equity firm Transom Capital Group acquired Cinder Block from founder/president Jeffery Bischoff, who retained some ownership of the business. Last year, Sony Music Entertainment entered into a strategic partnership agreement with BandMerch to expand and develop Sony’s merchandising programs in the North American retail market in conjunction with the Thread Shop, Sony’s merchandising arm.