Pacha Group on Sale for $562 Million: Report

Steve Black/REX/Shutterstock 
Pacha Ibiza on May 27, 2014. 

Iconic international nightclub brand Pacha is reportedly up for sale after 49 years of service.

According to a report by Spanish publication Cronica Global, Pacha founder Ricardo Urgell is fed up with the Mutates family's domination of Ibizan nightlife and can't see a way to reconcile his company's ideals with the VIP-centric atmosphere it champions.

Have Ibiza's Glory Days as a Dance Music Mecca Come to an End?

"It's simple: Ricardo Urgell—founder—cannot stomach the Matutes family," sources close to Pacha Group are quoted as saying. "Pacha does not believe in this new idea of a rich Ibiza as pushed forwards by Abel Matutes J. The founder cannot go on any more, and his children do not want to bear witness to the future. For this reason they are looking for an investor."

The Mutates, once called “the Kennedys of Ibiza,” are the minds behind Ushuaia nightclub's more commercial approach and recently announced the takeover of fellow Ibizan nightclub Space when its lease is up at the end of the year. Legendary techno DJ Carl Cox has held down a residency at Space for 20 years, but will not continue to work with the new owners.

Where Is the Next Ibiza? 5 Contenders -- From Mykonos to Croatia

Urgell reportedly looks to sell Pacha, associated venues including Destino and Lio, as well as its international franchises for a price tag of €500 Million, or $562,050,000.

Representatives of the Pacha Group provided the following statement to Billboard Dance:

Regarding the latest news published about the potential investment in Pacha Group from a venture capital found, the company informs that:

·        Pacha Group regularly receives many offers from potential investors and their team of professionals analyses and evaluates each closely.

·       In the event of a financial operation with enough informative relevance, Pacha Group will notify promptly that information to the media according with their transparency principle and the good governance management which governs in this company.

Via: Resident Advisor