Global investment firm KKR has agreed to acquire European festival promoter Superstruct Entertainment from Providence Equity Partners, it was announced on Friday (21 June).
Superstruct — which organizes Sziget, the Budapest music festival that is one of Europe's largest, and Wacken Open Air, the world's largest heavy metal festival held in Germany — was founded in 2017 by Providence and James Burtonformer Live Nation executive who founded Liverpool-based nightclub Cream.
Providence quickly grew Superstruct through acquisitions – it now operates 80 festivals in Europe and Australia – and carried it through the downturn in the live events industry caused by the COVID-19 pandemic. Rising demand for live entertainment and continued growth forecast gave the private equity firm an opportunity to cash in.
Terms of the deal were not disclosed, although the Financial Times reported that Superstruct sold for about 1.3 billion euros ($1.39 billion). Providence has the option to invest 250 million euros ($268 million) in Superstruct, according to KKR's statement.
KKR, which has worked with BMG on investments in the past, will leverage its network of music and media companies to expand Superstruct's dominance as a European festival promoter, according to a statement from the partner/co-head of European private equity Philip Freise and partner Franziska Kayser.
KKR made the investment through its $8 billion European Fund VI. Through this fund, KKR has also invested in communications firm FGS Global and German SpaceX client OHB.
Goldman Sachs acted as financial advisor and Kirkland & Ellis provided legal advice to KKR. HSBC and LionTree provided financial advice to Providence, while White & Case served as the company's legal counsel.
