CHS Chrysalis

 

TIDMCHS 
 
RNS Number : 5718J 
Chrysalis PLC 
01 April 2010 
 

 
           Chrysalis acquires international music publishing business 
  Deal secures partnership with major institutional investors and pension funds 
 
 
Chrysalis PLC ("Chrysalis" or the "Group"), the leading independent music 
publisher is pleased to announce today that it has acquired First State Media 
Group (Ireland) Limited ("FSMG"), an international music publishing business 
with operations under the S1 Songs and State One Music brands in 7 countries. 
 
FSMG controls over 45,000 music copyrights comprising, amongst others, the 
catalogue of Sheryl Crow (including If It Makes You Happy, All I Wanna Do and 
Everyday Is a Winding Road), the former "Dreamworks" catalogue (including 
Leaving on a Jetplane and Take Me Home Country Roads (John Denver), Disco 
Inferno (The Tramps), Somebody to Love (Jefferson Airplane), Superstar (The 
Carpenters)) and the "Wind-Up" catalogue (including Bring Me To Life 
(Evanescence) and Paralyzer (Finger Eleven)). 
 
As a result of the transaction, Chrysalis will manage music copyright assets 
worth in excess of US$155m on behalf of FS Media Works Fund 1 (the "Fund") - a 
partnership of international institutional investors and pension funds.  This 
positions Chrysalis as a significant partner to investors that have a strong 
appetite for investing in music copyright assets that generate stable cash flow. 
 Chrysalis, as a result of its proven capability and reputation, believes it is 
well placed to take full advantage of the opportunity that this presents. 
 
Chief Executive, Jeremy Lascelles said: "We have been looking at a number of 
catalogues in recent months and it is great to secure a portfolio containing so 
many classic songs from the past 50 years, including some of my all-time 
personal favourites.  I'm thrilled at the prospect of managing these songs under 
the Chrysalis banner and of seizing opportunities to use them across a wide 
range of platforms." 
 
Chairman, Chris Wright added: "It's also very significant that we now have 
access to a new group of investors to partner with in executing our strategy. 
The long term investment horizon of these institutions and pension funds is 
extremely well suited to music publishing assets, which have a long term life, 
and we look forward to developing a close long term relationship with them." 
FSMG was acquired for GBP11.0m (US$16.5m) payable in cash on completion from 
First State Media Holdings Limited, a subsidiary of Commonwealth Bank of 
Australia Limited and Dream Theatre (Music and Arts) Ireland Limited and Dream 
Theatre Ireland No.2 Limited, two entities associated with the management of 
FSMG.  The acquisition is being fully funded from Chrysalis' existing 
facilities, under which it retains a further GBP22.4m for future acquisitions. 
 
As at 30 June 2009, the date of the last audited financial statements, FSMG had 
gross assets of GBP13.2m (EUR15.6m) and a normalised loss for the year of GBP0.3m 
(EUR0.3m).  Chrysalis' existing international operations will result in 
significant synergies, including a wider exploitation of the copyrights and a 
reduction in the overall cost base, generating substantial operating cash flows, 
gross income and NPS. 
The transaction entitles Chrysalis to: 
·     approximately GBP2.7m (US$4.0m) per year of stable NPS from the Fund's 
copyrights over a 6½ year period, over 65% of which is derived from an 
administration fee based on purchase price; 
·     approximately GBP0.5m (US$0.8m) per year of NPS from FSMG's owned 
copyrights and other third party copyrights; and 
·     the right to advise the Fund in investing the remaining GBP6.7m (US$10m) 
it has in available funds, for which Chrysalis would earn a fee. 
 
The Fund has a term ending on 30 September 2015, with an option to extend until 
2018, after which the assets may be sold.  Naturally, Chrysalis would be well 
placed to acquire the assets outright at that time.  Chrysalis' contractual 
licence rights over the Fund's assets runs until 30 September 2016 with a 
further 3 year option. 
 
 
Enquiries 
 
+------------------+------------------+------------------+------------------+ 
| Chrysalis PLC    | Jeremy Lascelles | Group Chief      | 020 7465 6170    | 
|                  |                  | Executive        |                  | 
+------------------+------------------+------------------+------------------+ 
|                  | Andy Mollett     | Group Finance    | 020 7465 6321    | 
|                  |                  | Director         |                  | 
+------------------+------------------+------------------+------------------+ 
|                  |                  |                  |                  | 
+------------------+------------------+------------------+------------------+ 
| Brunswick        | Tim Burt         |                  | 020 7404 5959    | 
+------------------+------------------+------------------+------------------+ 
|                  | Max McGahan      |                  |                  | 
+------------------+------------------+------------------+------------------+ 
 
 
 
Notes to Editors 
First State Media Group (Ireland) Limited ("FSMG") was formed in 2006 and 
manages approximately 45,000 copyrights including the former "DreamWorks", 
"Wind-up" and "Sheryl Crow" catalogues.  Combining general funds management 
capabilities and deep investment and industry experience of key staff, FSMG is 
an integrated and specialist manager of intellectual property assets, with a 
particular focus on media copyright assets.  Since its formation, FSMG has built 
one of the world's largest privately held portfolios of music copyright assets 
and has established an international platform of wholly owned music publishing 
subsidiaries to manage its assets, including S1 Songs Global Group and State One 
Music Publishing.  FSMG currently employs over 40 staff located in Ireland, the 
United Kingdom, the United States (New York, Nashville & Los Angeles), Germany, 
France, Spain, Sweden, and Australia.  FSMG was set up as a joint venture 
between Colonial First State Global Asset Management and an investment 
management team led by Steve McMellon and Geordie Manolas. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 ACQLLFLRVTILVII 
 

Chrysalis (LSE:CHS)
Historical Stock Chart
Von Dez 2024 bis Jan 2025

Chrysalis (LSE:CHS)
Historical Stock Chart
Von Jan 2024 bis Jan 2025