HgCapital has acquired a controlling interest in Eagle Rock Entertainment from edel, the former Neuer Markt listed German music group, and provided it with development capital in a £34 million transaction.
 
Eagle operates in the entertainment rights industry, acquiring, creating and exploiting audio and visual content, principally in the rock music genre. It sources and distributes on a worldwide basis, with output being principally on CD, DVD and TV.
 
Eagle has grown rapidly since its foundation in 1997 and has sales in excess of £25 million per annum. It has established a strong position and a valuable catalogue of Intellectual Property Rights (IPRs) in an attractive niche: established artists with enduring and international fan bases. Examples include Status Quo, Tina Turner, the Bee Gees and Janet Jackson.
 
Nick Martin, Director of Media Investment, HgCapital, said:
"The entertainment rights industry is one that we know well, having invested successfully in it in the past. Our Frankfurt media colleagues were monitoring edel, which allowed us to identify Eagle as an attractive target, when it announced its intention to float. We approached edel and Eagle management with an unsolicited offer. We were impressed by the management team's track record and by its IPR catalogue whose value underpins our investment.
 
"This is the first investment by the Media team since its formation less than twelve months ago. We have made many unsolicited offers over the last six months and expect several more deals to move forward in the New Year."
 
Terry Shand, Chairman and Chief Executive, Eagle Rock Entertainment commented:
"The MBO has allowed the company to raise the development capital it needs. At the same time we have avoided equity dilution of management, who have a significant stake. We felt comfortable with the HgCapital team from an early stage and are looking forward to working together in the development of the company."

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