The investment by RLPE provides MKG with the financial strength to pursue its ongoing strategy of rolling out the Academy brand across the UK, building on its existing successful venues. Carling Academy Brixton is MKG's flagship venue, having hosted major live acts including the Rolling Stones, Madonna and Eminem. MKG owns further Academy venues in Birmingham, Bristol, Glasgow, Liverpool and Islington (London), as well as West London's Shepherd's Bush Empire and Bar Academy sites in London and Birmingham.
RLPE is taking a 52% stake with existing shareholders, MKG's management and three of the UK's leading concert promoters, Metropolis Music, SJM Concerts and MCD Productions owning the balance of shares. These three promoters are responsible for promoting many international acts on the touring circuit, as well as collectively owning and promoting some of the biggest outdoor music events, including the annual V Festival.
RLPE director Richard Caston will join the Board alongside MKG's senior management team: managing director John Northcote; finance director Patrick Marling and operations director Steve Forster. Bob Angus (Metropolis Music), Simon Moran (SJM Concerts) and Denis Desmond (MCD Productions) are also on the Board. The transaction provides an exit for the founder shareholders, brewer Charles Wells Ltd and non-executive chairman, Ian Howard. Debt for the transaction has been provided by Lloyds TSB Corporate.
Commenting on the deal, Richard Caston said: "We were attracted to MKG because of its leading position in the dedicated live music venue sector, its strong relationships with the principal promoters of live music events and the track record of the incumbent management team. We will be working with the MKG management team and shareholders to enable it to build on its current successes."
(Lee Baldock)
