Vivendi And Universal Music Group (UMG) To Purchase EMI Music
Friday, November 11, 2011
Paris, London, New York, Los Angeles, November 11, 2011 - Vivendi and its subsidiary, Universal Music Group
(UMG), announced today that they have signed with Citigroup (“Citi”) a definitive agreement to purchase EMI’s
recorded music division for a total consideration of £1.2bn representing 7 X EBITDA prior to synergies.
EMI Group is one of the world’s most prominent music companies, possessing a rich musical legacy. Its recorded
music division, EMI Music, operates around the world and represents artists spanning all musical tastes and genres
through record labels including 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.
Jean-Bernard Lévy, CEO of Vivendi, stated: “We are very proud to welcome EMI into the Vivendi family. We all
respect the labels within EMI as well as the artists and employees who contribute to its success. They will find
within our Group a safe, long term home, headquartered in Europe.” He then added: “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’s personal experience and heritage will be a major
asset in making the combined entity a great success.”
Lucian Grainge, Chairman & CEO of Universal Music Group, added: "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. As a result, we will be better positioned to fully capitalize on the
many new and exciting opportunities in the current marketplace, and also able to better serve our artists, songwriters
and business partners, while offering fans even more choice.”
Stephen Volk, Chairman of the Board of EMI Group and Vice Chairman of Citigroup, added: “We believe that this
transaction accomplishes Citi's objective of maximizing the value of EMI, giving EMI Music a partner in Universal
Music that appreciates EMI’s rich cultural legacy, its incredible stable of musical talent, and its employees who work
so hard to deliver successful outcomes for the artists they represent. We are grateful to Roger Faxon, his
management team and all of EMI’s staff for the continued success of this business during Citi's ownership."
The transaction has been approved both by the Management Board and the Supervisory Board of Vivendi. Closing of
the agreement remains subject to a number of conditions, including approvals of regulatory authorities in the
countries and continents concerned.
Vivendi will finance the transaction from its existing credit lines. Concurrently, Vivendi and UMG will also sell 500
million euros worth of non-core UMG assets.
Vivendi and UMG have been advised by Allen & Co. and SJ Berwin on this transaction. Citi Global Banking acted as
financial advisor to Citi and EMI. Clifford Chance LLP, Shearman & Sterling LLP and Freshfields Bruckhaus Deringer
LLP acted as legal advisors to Citi and EMI.