Round Hill, which has been involved in exclusive negotiations to buy Carlin America after submitting the winning bid in an auction, has signed a letter of intent to buy the publisher for $245 million. The deal, first reported by Bloomberg, is still subject to closing.
The catalog is filled with iconic songs, which is why it is able to command what will be a 16.3 times multiple on $15 million in net publisher’s share, or gross profit, if it closes at that price point. High quality publishing catalogs have been trading on a 12 times NPS multiple, but recently the asking valuation on publishing assets has escalated to higher multiples, as witnessed by this deal.
Carlin America's vast catalog includes such classics as "Spanish Harlem," "Sea Of Love," "Nashville Cats," "Viva Las Vegas," "Happy Together," "Cool Jerk," "Fever," "When The Saints Go Marching In," "Charlie Brown," "Monster Mash," "Good Lovin'," "What a Wonderful World," "Save the Last Dance for Me" and "Lola," according to the company's website.