Chrysalis founder nets £30m from sale to BMG

Chrysalis is to be taken over by a German media group and a US private equity giant in a cash deal worth nearly £110m, which will net its co-founder Chris Wright a cool £30.1m.

BMG, a joint venture between Germany's Bertelsmann and Kohlberg Kravis Roberts, will pay 160p a share for Chrysalis, a 45.5 per cent premium to the closing price of 110p on 29 October, the day before the London-based company revealed it was in takeover talks. Shareholders owning 73.4 per cent of Chrysalis – whose back catalogue includes tracks by pop legends Michael Jackson and David Bowie – have backed the £107m bid, which is expected to complete in early February 2011. After four decades of independence, Chris Wright, the chairman of Chrysalis, said: "The deal marks the end of one era and the start of another for Chrysalis."

Mr Wright, who has a 28 per cent stake in Chrysalis, will become the non-executive UK chairman of BMG and join its supervisory board. Back in 1967, Mr Wright formed the Ellis Wright Agency with Terry Ellis, to make a living from managing and booking bands. The company was renamed Chrysalis in 1969 and Mr Ellis sold his shares to Mr Wright in 1985.

Chrysalis grew rapidly in the 1980s and its back catalogue also boasts artists such as Blondie and Billy Idol.

Mr Wright sold the original record label to Thorn EMI in 1991 and offloaded Chrysalis's radio division to Global Radio for £170m in 2007, but crucially he kept its music publishing interests. BMG will use the Chrysalis name for at least the next three years. Hartwig Masuch, the chief executive of BMG, said: "The acquisition of Chrysalis represents an important step forward in our strategy as we build a major global music rights business."

Jeremy Lascelles, the chief executive of Chrysalis, will remain in his role until the deal completes, but sources said it was too early to comment on a future position for him.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Mortgage Administrator

£20000 - £25000 per annum: Recruitment Genius: We are a vibrant and establishe...

Recruitment Genius: Payments Advisor

£15000 - £20000 per annum: Recruitment Genius: An experienced Repayments Advis...

Recruitment Genius: Investment Analyst

£25000 - £30000 per annum: Recruitment Genius: This leading provider of financ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Are you looking to take your ...

Day In a Page

Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent
Markus Persson: If being that rich is so bad, why not just give it all away?

That's a bit rich

The billionaire inventor of computer game Minecraft says he is bored, lonely and isolated by his vast wealth. If it’s that bad, says Simon Kelner, why not just give it all away?
Euro 2016: Chris Coleman on course to end half a century of hurt for Wales

Coleman on course to end half a century of hurt for Wales

Wales last qualified for major tournament in 1958 but after several near misses the current crop can book place at Euro 2016 and end all the indifference
Rugby World Cup 2015: The tournament's forgotten XV

Forgotten XV of the rugby World Cup

Now the squads are out, Chris Hewett picks a side of stars who missed the cut
A groundbreaking study of 'Britain's Atlantis' long buried at the bottom of the North Sea could revolutionise how we see our prehistoric past

Britain's Atlantis

Scientific study beneath North Sea could revolutionise how we see the past
The Queen has 'done and said nothing that anybody will remember,' says Starkey

The Queen has 'done and said nothing that anybody will remember'

David Starkey's assessment
Oliver Sacks said his life has been 'an enormous privilege and adventure'

'An enormous privilege and adventure'

Oliver Sacks writing about his life
'Gibraltar is British, and it is going to stay British forever'

'Gibraltar is British, and it is going to stay British forever'

The Rock's Chief Minister hits back at Spanish government's 'lies'
Britain is still addicted to 'dirty coal'

Britain still addicted to 'dirty' coal

Biggest energy suppliers are more dependent on fossil fuel than a decade ago
Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

Orthorexia nervosa

How becoming obsessed with healthy eating can lead to malnutrition
Lady Chatterley is not obscene, says TV director

Lady Chatterley’s Lover

Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
Farmers in tropical forests are training ants to kill off bigger pests

Set a pest to catch a pest

Farmers in tropical forests are training ants to kill off bigger pests