Razor & Tie has bought back sole ownership of its Kidz Bop brand in a deal that closed this week. The label, which founded the brand, sold a 50 percent stake in Kidz Bop to ABRY Partners, a Boston-based private equity firm, back in 2006. In addition to a best-selling album series, the Kids Bop franchise also includes an annual tour, a book series, a radio show on Sirius XM and a video game.
The franchise was shopped to the majors and Disney, along with some independent music labels, earlier this year by Shot Tower Capital, a boutique investment bank. Sources said the brand generates around $12 million in annual revenue and produces about $2.8 million in earnings before interest, taxes, depreciation and amortization. While the deal was being shopped, ARBY was touting a $16-19 million valuation for the brand, sources added.