MAMA Group has acquired dance music festival operator Angel Music Group in a deal worth £2.65 million ($5.2 million).
The latest acquisition means that MAMA Group has bolstered its festival portfolio, which already includes investments in the Lovebox Weekender in London, Surfstock in Cornwall and the Great Escape in Brighton.
MAMA Group has entered into a conditional agreement to purchase 70% of the entire issued share capital from chairman and CEO Neil Moffitt. The payment will comprise £2 million ($3.9 million) in cash and the rest in MAMA shares, with a further £1.2 million ($2.4 million) payable subject to profit targets up to July 2008.
Angel Music Group owns the rights to the U.K. festival Global Gathering, along with LN-Gaiety Holdings, as well as the Welsh dance music festival Escape Into The Park. It also own several club brands including Godskitchen, which is based at the AMG Group-owned Air nightclub in Birmingham.
Godskitchen albums have been licensed to Virgin/EMI and AMG Group also produces Godskitchen and Global Gathering events around the world.
MAMA Group says that, based on management accounts, AMG Group has operating profits of £600,000 ($1.2 million). In its announcement, the company directors say the the investment will further increase MAMA's presence in the international music market following the acquisition of the U.S.-based Nettwerk Music Group in Nov. 2007.
The London-based MAMA Group, which is listed on AIM segment of the London Stock Exchange, owns U.K.-based music and media businesses including the Barfly venues, Hammersmith Apollo and London Forum.