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.
While Razor & Tie declined to disclose terms of the deal, the company's two owners, Cliff Chenfeld and Craig Balsam, issued a statement: “We are very excited to regain complete ownership of Kidz Bop. Razor & Tie and Kidz Bop are energized and ready to move forward by doing what we have always done -- diversify and grow.”
Since its first album was issued in 2001, the brand has scanned 14.9 million albums and 4.04 million track downloads.