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KKR To Acquire European Festival Giant Superstruct From Providence
Investment giant KKR announced the acquisition of Superstruct Entertainment, owner of some of Europe’s biggest festivals, from Providence Equity Partners. Financial terms of the transaction were not disclosed.
See: Superstruct Entertainment Reportedly Up For Sale
Superstruct owns and operates over 80 music festivals across 10 countries in Europe and Australia. Since its establishment in 2017 by Providence, Superstruct has grown – organically and through acquisitions – into one of the world’s biggest live entertainment groups.
Its portfolio includes Europe flagship events including Wacken Open Air, Defqon.1, Parookaville, Sziget, Tinderbox, Boardmasters, and Sónar.
KKR recognizes, that “demand for live entertainment has grown significantly over the past decade, and is expected to continue to expand, as consumer spending continues to shift from goods towards experience,” adding, that it “will support Superstruct in its next phase of development as one of the key players in a highly fragmented sector that continues to grow, expand and professionalize, whilst preserving the creative and cultural DNA of the Company,” according to the press release announcing the transaction.
As part of the transaction, Providence has an option to invest €250 million ($268 million) into Superstruct.
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Philipp Freise, partner and co-head of European private equity, and Franziska Kayser, partner at KKR, released this joint statement: “We are delighted to partner with Roderik Schlösser, James Barton and the team at Superstruct who have established themselves as a leader in delivering unparalleled live music experiences globally. With a robust foundation as a top-tier live entertainment platform, we see significant growth opportunities ahead for Superstruct.
“Drawing on our strong partnership approach and experience in the digital entertainment and ticketing space, such as BMG, ProSiebenSat1, GetYourGuide, and Trainline, as well as KKR’s global resources and extensive network, we will support the company and its entrepreneurial team to bring their compelling portfolio of live event formats to a wider audience and drive further growth.”
Andrew Tisdale, senior managing director, and Daniel Zwicky, director at Providence Equity Partners, added: “We are incredibly proud of the rapid growth and success Superstruct has achieved since its inception. With Providence’s backing, Superstruct has become a truly exceptional live entertainment company. In particular, we believe the Company’s resilience and emergence from the global pandemic as a stronger business is testament to the entrepreneurial spirit of Roderik Schlösser, James Barton and the impressive management team. We are confident that with KKR’s support, Superstruct will continue to thrive.”
Roderik Schlösser, CEO, and James Barton, chairman of Superstruct Entertainment, said in a joint statement: “The founding vision for Superstruct was to create a natural home for successful entrepreneurs, creative visionaries, and business-minded professionals in live entertainment. We wanted to create a network of influence setting the standards for live experiences. Through our development, we are a leader in the professionalization of this industry, enabling our dedicated teams to excel in a collaborative and inspiring environment and create and deliver best-in-class events for millions of fans. We are proud to have secured the backing of KKR, whose expertise and network will strengthen our ability to scale and innovate in the vibrant experiential economy. We would like to thank Andrew Tisdale, Daniel Zwicky and the team at Providence for their outstanding support. Their belief in Superstruct has been fundamental to our success.”
KKR’s European investments in the consumer, and TMT sectors, include Trainline, GetYourGuide, Mediawan/Leonine, ProSiebenSat1, GfK and Axel Springer. With its investment in Superstruct, KKR says, it “will draw from direct experience working with independent music businesses, including global music company BMG, helping the business deliver its vision of supporting songwriters and treasuring their artistry.”
KKR is making the investment in Superstruct through its European Fund VI, an $8 billion fund that invests in the growth of leading businesses by providing access to KKR’s extensive network and business building resources. Recent investments from European Fund VI include FGS Global, OHB and Nexeye. Across all investments, KKR is differentiated by its strong partnership approach in working closely with portfolio company management teams through their transformation and growth.
Goldman Sachs is acting as financial advisor and Kirkland & Ellis as legal advisor to KKR. Providence is being advised by HSBC and LionTree as joint financial advisors, and White & Case as legal advisor.
Take a look at Superstruct’s acquisition spree over the last few years below:
Superstruct Entertainment Acquires ID&T: ‘A Very Significant Milestone’
Superstruct Buys Spain’s The Music Republic
Superstruct Entertainment Invests In Wacken Open Air Promoter ICS
Superstruct Entertainment Invests In German Parookaville Promoter Next Events
Superstruct Entertainment Invests In Down The Drain Group Denmark
Superstruct Entertainment Acquires Portfolio Of Live Events From Global