Live Nation sells UK theatre assets

Tuesday November 3, 2009

Ambassador’s acquisition includes two West End theatres – the Lyceum and Apollo Victoria – and 14 regional theatres located throughout the United Kingdom, while Live Nation has also sold its one-third interest in London’s Dominion Theatre to The Nederlander Group to completely exit the theatrical business.

Live Nation reveals that the two sales represent a multiple of approximately 10.4 times estimated 2009 operating income.

Live Nation will use about half of the funds to help pay off debt by reducing its term loans. The remaining cash will go toward working capital.

Crucially the divestment may also help appease the Competition Commission as part of the remedies it is seeking to allow Live Nation’s merger with Ticketmaster to proceed.

“Despite extremely difficult economic conditions, our UK Theatre division has performed exceedingly well over the past year, enabling us to complete the sale at a price that represents an attractive valuation multiple,” says Live Nation president and CEO Michael Rapino.

“The proceeds generated from this sale allow us to continue our goal to de-lever our balance sheet by selling off assets that are not core to our live music strategy.”