Universal Music Confirms $1.9 Billion Deal for EMI Recorded Music Unit
The acquirer and its corporate parent Vivendi said they would sell 500 million euros ($685 million) worth of non-core assets as UMG head Lucian Grainge says the deal is "an important step in preserving the legacy of EMI Music."
NEW YORK - Vivendi and its Universal Music Group made things official on Friday, saying they have signed a definitive agreement to purchase EMI’s recorded music division from Citigroup for 1.2 billion pounds ($1.9 billion).
Vivendi and UMG said they would sell 500 million euros ($685 million) worth of non-core UMG assets, but didn't detail which ones.
EMI's recorded music division represents such labels as Angel, Astralwerks, Blue Note, Capitol, Capitol Latin, Capitol Records Nashville, EMI Classics, EMI CMG, EMI Records, EMI Records Nashville, Manhattan, Parlophone, Virgin Classics and Virgin Records.
“We are very proud to welcome EMI into the Vivendi family," said Vivendi CEO Jean-Bernard Levy. “We plan to acquire EMI’s recorded music division on attractive terms, adhering to our principle of total financial discipline. We are confident that we will be able to create additional value for our shareholders thanks to our knowledge of the industry and our proven track record of successful integration."
Lucian Grainge, chairman & CEO of Universal Music Group, said: "This is an historic acquisition for UMG and an important step in preserving the legacy of EMI Music. For me, as an Englishman, EMI was the preeminent music company that I grew up with. Its artists and their music provided the soundtrack to my teenage years. Therefore, UMG is committed to both preserving EMI's cultural heritage and artistic diversity and also investing in its artists and people to grow the company's assets for the future."
Closing of the deal is subject to a number of conditions, including approvals of regulatory authorities in the countries and continents concerned.
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