The US private equity firm KKR has agreed to purchase UK-based Superstruct Entertainment, the company behind major European music festivals, including Hungary’s Sziget and Germany’s Wacken Open Air, for €1.3bn according to the Financial Times.
This acquisition reflects KKR’s confidence in the growing demand for live events on the continent despite cancellations of several festivals in the US.
Superstruct Entertainment hosts over 80 festivals in 10 countries, drawing 7 million attendees annually. Notable festivals under its banner include Cornwall’s Boardmasters and Denmark’s Tinderbox. The live events industry, severely impacted by the COVID-19 pandemic, has seen a strong recovery, with companies like Live Nation reporting record profits over the last two years, prompting this significant investment.
KKR is acquiring Superstruct from Providence Equity Partners, which founded the company in 2017 to consolidate its festival acquisitions. Providence will retain an option to invest €250 million in Superstruct despite relinquishing ownership.
James Barton, a former Live Nation executive, co-founded Superstruct and serves as its chair. According to sources, the platform has significant potential for further festival acquisitions.
KKR which stands for Kohlberg Kravis Roberts & Co. has a history of investing in the European entertainment sector, including stakes in music group BMG, German broadcaster ProSiebenSat.1, UK ticketing app Trainline, and public relations firm FGS Global.
The acquisition is one of Europe’s larger buyout deals this year, signaling a modest revival in dealmaking amid challenging economic conditions. Global private equity deals reached $286 billion in the first five months of the year, up over 30% from the same period last year, according to the London Stock Exchange Group.
