The publishing house picked up a catalog chock-filled with iconic songs, including "Fever," "Happy Together," "The Twist" and more.
While Round Hill Music's acquisition of Carlin Music took longer than expected to close, the deal was completed in the last days of 2017 and formally announced on Wednesday. And though its terms were not disclosed, sources say Round Hill paid $245 million, using about 30 percent leverage. That means it raised about $175 million in equity financing from institutional investors and another $75 million or so in debt, with SunTrust supplying the latter.
With the Carlin catalog carrying a net publishers' share (or gross profit) at about $15 million annually, that means it went for about a 16 times multiple, which is in line with escalating pricing multiples for music assets. Three years ago, a 12 times multiple was the going rate for market valuations.
In buying Carlin America -- founded by music industry legend Freddy Bienstock in 1966 and until now run by his daughter Caroline -- Round Hill picked up a catalog chock-filled with iconic songs, including "Fever," "Happy Together," "The Twist," "La Bamba," "Chantilly Lace," "Under the Boardwalk," "What A Wonderful World," "Splish Splash," "Paradise by the Dashboard Light," "Owner of a Lonely Heart," "Video Killed The Radio Star," "She Blinded Me With Science," "Santa Baby," "Jingle Bell Rock" and "Christmas (Baby Please Come Home)," as well as important Broadway music such as the scores to "Fiddler on the Roof," "Cabaret" and "Godspell," among others.