IMAGEM MUSIC BUYS NR. 1 CLASSICAL MUSIC PUBLISHING GROUP: BOOSEY & HAWKES

Imagem Music, the music publishing fund of ABP, the Netherlands based world's 3rd largest pension fund and CP Masters BV, one of Europe's leading independent music publishers, purchased Boosey & Hawkes for a consideration of approximately £126million from HgCapital.

HgCapital, the European sector-focused private equity investor, today announced that it has agreed to sell Boosey & Hawkes. The sale completes a successful four-year investment and turn around program for HgCapital and represents a significant return following its original acquisition of Boosey & Hawkes, then a public company, for £75 million in December 2003.

During that time the firm supported Boosey & Hawkes’ management in executing a transformation from a traditional classical music publisher into a 21st century music rights group. The company has outsourced a number of non-core activities such as printing and retailing and developed a series of new revenue streams. In particular it has developed a strong presence in the market for music in advertising and film, where revenues are currently growing at approximately 30% per annum.

In 2003, Boosey & Hawkes made earnings (before interest, tax, depreciation and amortisation) of approximately £3.3 million; by 2007 it achieved earnings of £6.8 million.

Boosey & Hawkes controls the rights to more than 116,000 works of music and choreography, from many of the world’s most famous classical composers, including Stravinsky, Rachmaninoff, Benjamin Britten and Prokofieff. It also works with many of the world’s most renowned living composers such as Peter Maxwell-Davies, Karl Jenkins, John Adams and Steve Reich.

During HgCapital’s ownership it has made [seven] acquisitions that have moved it into new areas such as Ballet, Tango, and signed rights in news areas like jazz, with composer/performers such as Wynton Marsalis.
The existing management team led by John Minch, the chief executive will be retained.

Imagem Music – the music publishing fund of ABP (represented by APG) and CPM – has acquired the classical catalogue managed by Boosey & Hawkes.  The acquisition is a long term strategic investment for IMAGEM MUSIC which also recently acquired various music catalogues from Universal Music Group, such as Zomba UK, Rondor UK, 19 Music and the greatest part of the BBC catalogue. 

Ronald Wuijster, head of Strategy and Research of APG Investments, said:
“We view this transaction as a great add-on to our recent acquisition of certain catalogues with popular music content from Universal (UMG). This acquisition of the largest classical music rights catalogue in the world greatly diversifies our portfolio and strengthens our position.
“We are committed to be a long term investor in this space and find intellectual property rights, among which music rights is an important category, a lucrative new asset class with interesting characteristics for a long term investor that is looking for real absolute returns.”

Commenting on the transaction, Nick Turner from HgCapital said: “We are very pleased to have reached this agreement with IMAGEM MUSIC. Boosey & Hawkes is a first class music business that has thrived under HgCapital’s ownership and this transaction fully reflects the hard work and success that the company and its management has enjoyed in recent years. We wish them well in the future.”
André de Raaff, CEO of CP Masters BV said: "We are extremely excited to be connected now with the world's best classical music from many legendary composers as well as many successful living composers. Classical entertainment is enjoying a tremendous growth, also because of the aging of the world population. Boosey & Hawkes and our other music publishing assets will be run separately, however synergies with regard to syncs, finance, royalties & copyrights and the Boosey & Hawkes offices in Berlin and New York will be created immediately. "

John Minch added: “This is an excellent outcome for everyone concerned. HgCapital has been a tremendous owner for Boosey & Hawkes in the past five years and has enabled it to undergo transformational change. In 2003 Boosey & Hawkes was in some difficulties as a public company and going private enabled us to make the radical changes necessary for the survival of the business. Imagem Music meanwhile promises to be a highly supportive long-term owner that can reap steady and predictable financial benefits from our world class music portfolio. We look forward to working with them.”

HgCapital was advised in this transaction by Close Brothers Corporate Finance and Weil Gotshal & Manges.

ABP was advised by ABN AMRO Bank N.V., Herbert Smith and Statham Gill Davies Solicitors.