Music indie sold off for $80 mil
Gotham-based indie music company Koch Entertainment said Tuesday it has agreed to sell itself to Canada’s Row Entertainment Income Fund in a deal worth $80 million.
Koch Entertainment, founded 19 years ago by Michael Koch, is one of America’s largest independent record, music publishing and distribution companies as well as a fast-growing independent video label and distributor.
Koch’s recording and music publishing business produces and markets, under Koch’s private labels, including Adult Contemporary, Country, Urban, Hip-Hop/Rap and children’s music. Koch also holds Gotham theater music label DRG Records.
Purchase price includes $20 million of Row Fund Units, $55 million of cash and $5 million of assumed debt. Deal is set to close by June 1.
Row Entertainment is the largest wholesaler and the largest specialty retailer of CDs and DVDs in Canada. Its shares are publicly traded on the Toronto stock exchange.
Row and Koch together will have annual revenue of more than half a billion dollars.
Michael Koch will continue to run Koch. He said in a statement he’s happy at “finally being afforded access to the capital markets when the right acquisition opportunity arises.”
The Koch management team, including Bob Frank, president Koch Records; Michael Rosenberg, president Koch Entertainment Distribution and Koch Vision; Dominique Zgarka, president Koch Entertainment Canada; and Alan Grunblatt, executive vice president Koch Records, will remain in place.