EU approves sale of music festival promoter Superstruct Entertainment

Europe’s antitrust regulator has approved the sale of music festival promoter Superstruct Entertainment to US investment giant KKR, with the €1.3 billion deal supported by OC&C Strategy Consultants.

The world’s second biggest music promoter of its kind, Superstruct oversees 80-plus festivals across the globe, including Sydney’s New Year’s bash Field Day along with legendary international events such as Mysteryland, Sziget, and Sónar.

Yet, the approved €1.3 billion sale comes amidst a local backdrop where many of the country’s most cherished music institutions are calling it quits due to skyrocketing costs, including Splendour in the Grass, Falls, and most recently Bluesfest.

Superstruct was established in 2017 by Creamfields founder James Barton with the backing of Roderik Schlosserwith and private equity firm Providence, and has since expanded rapidly throughout Europe and in Australia, where it also hosts the annual touring festival Listen Out and Harbourlife in Sydney. Altogether, Superstruct events attract 7 million party-goers per year.

Superstruct however has even greater ambitions, prompting its sale to KKR to support the entertainment company’s next phase of growth to further compete with global behemoth LiveNation. Barton said: “We are proud to have secured the backing of KKR, whose expertise and network will strengthen our ability to scale and innovate in the vibrant experiential economy.”

HSBC, LionTree and law firm White & Case were among the sale-side financial and legal advisors on the deal with KKR’s fellow private equity giants Blackstone, CVC, and EQT also reportedly in the hunt, while OC&C Strategy Consultants provided Superstruct with commercial vendor due diligence. The likes of Goldman Sachs and Kirkland & Ellis worked the buy-side.

“We’re thrilled to congratulate Superstruct on its acquisition by KKR, which sees significant growth opportunities in the live entertainment sector following rising demand over the past decade. KKR plans to support Superstruct’s expansion and professionalisation in this fragmented industry, leveraging their experience in digital entertainment and ticketing,” stated OC&C Strategy Consultants in an announcement on the deal.

While EU regulators have now waved through the deal, the situation remains quite messy in local terms. LiveNation, the owner of Splendour and Falls, is currently being scrutinised by lawmakers over market concentration, while Silver Lake, which has a piece in both LiveNation and TEG – the local competition of its Tickmaster line – recently secured funding for the former from KKR.