German concerts firm Deutsche Entertainment AG (DEAG) has acquired a controlling stake in the British concert, tour and festival promoter Kilimanjaro Live and its subsidiary Twin Peaks Ltd for a sum of nearly €4 million ($5.5 million).
Kilimanjaro Live was launched in 2008 by former Live Nation U.K. managing director Stuart Galbraith through a partnership with AEG Live. The company's first major promotion was a run of shows from the Eagles at London's O2 Arena. Kili Live currently stages about 350 events each year, including recent U.K. tours for Peter Gabriel, Ed Sheeran, Nitro Circus, Andrea Bocelli, Red Hot Chili Peppers and Simply Red. Its portfolio of festivals includes the traveling Sonisphere brand, which in 2014 will include performances by such bands as Metallica, Iron Maiden, Limp Bizkit and The Prodigy, and is expected to shift around 300,000 tickets.
Following the transaction, Kilimanjaro CEO Galbraith is to continue to be in operational control of the business, which will continue to run under its existing structure and management team, according to a joint statement.
“This is an exciting time for Kilimanjaro,” comments Galbraith in a statement. “We have always operated as an independent promoter and this deal allows us to continue to do so whilst benefiting from the support and reach of being affiliated with an organization such as DEAG.” He continues, “We already have a lot of exciting projects in place for 2014 and this deal will mean that our customers and supporters can expect the same and more in 2015. It’s a time for growth and investment in our core regular projects whilst looking for interesting opportunities wherever they arise.”
For Kili Live, the deal creates an opportunity to further its existing projects in Europe through DEAG’s various subsidiaries, which include Wizard Promotions in Germany, Good News Production in Switzerland and Blue Moon Entertainment in Austria. In the U.K. market Kilimanjaro is expected to work closely with DEAG’s British subsidiary Raymond Gubbay.
“This is a further strong stride into the U.K. market for us with a strong and well respected partner helping us to double our turnover in this market,” comments Detlef Kornett, executive board member of DEAG. “We are also hoping that opportunities with exciting artists and tours for Germany, Austria and Switzerland will arise.”
According to a separate statement from the German company, the acquisition was arranged through its subsidiary DEAG Concerts GmbH and the purchase price might yet increase depending on “the future business development of the company” between 2014 to 2017.