Cirque du Soleil sold to U.S. firm for $1.5B,
Reported $1.5B deal will see head office remain in Montreal as circus eyes China expansion
Cirque du Soleil has been sold to a U.S. private equity firm with interests in casinos and retailers in a deal aimed at moving the entertainment company beyond the big tent.
The Quebec-based entertainment giant confirmed Monday that it had sold a majority stake to TPG. The value of the deal was not disclosed. Some reports have put it at $1.5 billion (U.S.).
The deal also brings in Fosun Group, a Chinese investment group often compared to Warren Buffett’s Berkshire Hathaway, and Quebec’s pension fund manager, Caisse de dépôt et placement, as minority stakeholders.
The new owners say they plan to expand Cirque’s presence in China. They also want to do more thirdparty licensing deals, digital media and ticket sales.
TPG says its experience building brands such as J. Crew and Neiman Marcus, along with its strong media and entertainment relationships, will provide Cirque with new revenue opportunities.
“We are inspired by Guy Laliberté’s imagination and vision, and look forward to working with him and his talented team, as well as the vibrant Montreal creative community,” said David Trujillo, a TPG partner.
Laliberté, a former street performer who co-founded Cirque, will retain a stake in the business and continue to provide strategic and creative input.
“After 30 years building the Cirque du Soleil brand, we have now found the right partners in TPG, Fosun and the Caisse to take Cirque du Soleil forward to the next stage in its evolution as a company founded on the conviction that the arts and business, together, can contribute to making a better world,” Laliberté said in a statement Monday.
Cirque du Soleil has recently been developing other businesses based on its live shows, including a theme park in Mexico with Grupo Vidanta, resort activities for Club Med, licensing deals with fashion brands such as Desigual and digital media with BCE Inc..
Cirque’s global headquarters, which employs 1,400 of Cirque’s 4,000 people, will remain in Montreal, assuaging politicians’ concerns about losing a cultural icon.
Caisse de dépôt CEO Michael Sabia said it is partnering with Cirque as it seeks to conquer new markets.
“We are pleased that this new era of growth will be directed from Montreal, the Cirque’s decision-making and creative centre, under the direction of Daniel Lamarre as CEO,” he said in a statement.
The agreement will also see Quebec businessman Mitch Garber become chairman of the company.
The sale is expected to close in the third quarter.
Founded in 1984, Cirque du Soleil has grown from a small group of Montreal street performers into one of the world’s biggest entertainment companies, with 18 shows currently in performance, including The Beatles Love and Michael Jackson One.
The shows combine modern rock concert sound and lighting techniques with traditional circus acts, minus the animals.
Since its inception, Cirque has played to almost 160 million spectators in more than 330 cities in some 48 countries.
The company has been seeking to reinvent itself since encountering financial troubles despite its enormous popular appeal and creative success.
In January 2013, the company announced 600 layoffs following a disastrous 18-month period in which four major Cirque du Soleil shows closed around the world, in Tokyo, Macau, Las Vegas and Los Angeles. With files from Star wire services