Warner Music Group announced today that it has signed a definitive agreement to acquire the Parlophone Label Group from Universal Music Group for £487 million (around $765 million) in an all-cash transaction. A source told Billboard.biz that the deal was completed early this morning, U.K. time.
Formerly a part of EMI Music, Parlophone The Parlophone Label Group is comprised of the historic Parlophone label and Chrysalis and Ensign labels as well as EMI’s recorded music operations in Belgium, Czech Republic, Denmark, France, Norway, Portugal, Spain, Slovakia and Sweden. Its artist roster and catalog of recordings include, among many others, Air, Coldplay, Daft Punk, Danger Mouse, David Guetta, Deep Purple, Duran Duran, Edith Piaf, Gorillaz, Iron Maiden, Itzhak Perlman, Jethro Tull, Kate Bush, Kylie Minogue, Maria Callas, Pet Shop Boys, Pink Floyd, Radiohead, Shirley Bassey, Tina Turner and Tinie Tempah.
"Following this transaction, we will continue with our global reinvestment program that is rebuilding EMI and ensuring that the company is able to reach its full potential," said Lucian Grainge, Chairman & CEO of UMG. “And we’re satisfied that our agreement with Warner Music will provide a home for PLG artists.”
Len Blavatnik, Chairman and founder of Access Industries, said, “This is a very important milestone for Warner Music, reflecting our commitment to artist development by strengthening our worldwide roster, global footprint and executive talent.”
According to a statement, Warner Music Group has obtained commitments to finance this transaction through a new term loan facility provided through Credit Suisse, Barclays, UBS, Macquarie and Nomura. UMG and Vivendi were advised by Goldman Sachs and Bank of America Merrill Lynch on financial matters, and SJ Berwin, Shearman & Sterling and Smiths Law on legal matters.
The closing of the transaction is expected to occur mid-year 2013, subject to certain regulatory approvals and, as far as the French entities are concerned, after the consultation procedure with employee representatives.
Billboard.biz will have more on this story shortly.