New York-based global private equity company KKR & Co. Inc. acquired has leading German producer-distributor Tele München Group (TMG) from long-time TMG owner Herbert G. Kloiber.
Kloiber – who acquired the integrated media company in 1977, eight years after its founding – will serve on TMG’s advisory board for the new platform created by KKR. He will remain on the executive board of 85% TMG-owned Odeon Film AG until the company’s annual shareholders meeting in July.
Entertainment industry veteran and former Constantin Medien executive Fred Kogel is to lead TMG as CEO. The exec holds more than 25 years of management experience in the media industry and has previously served as head of entertainment at ZDF, MD of Sat.1 and Kirch Media, CEO of Highlight Communications’ film division. In addition, he has held numerous board memberships with ProSiebenSat.1 Media, Kirch Media, Constantin Medien and Constantin Film.
As part of the sale, TMG will retain full ownership of the theatrical distribution arm Concorde Filmverleih, the home entertainment distribution arm Concorde Home Entertainment GmbH, the production company Clasart Film- und Fernsehproduktions, the world sales arm TM International and the German free-TV channel TELE 5 TM-TV.
Financial terms of the deal were not disclosed though KKR revealed it had made its investment from its European Fund IV. The transaction is still subject to regulatory approvals and is expected to close in April.
TMG partners include Burda, Heinrich Bauer Verlag and Walt Disney/ABC International Television Inc. Past partners include Silvio Berlusconi’s Fininvest, Bertelsmann/CLT and Axel Springer Verlag, Capital Cities/ABC, Rupert Murdoch’s News Corp. and EM.TV AG.
Herbert L. Kloiber (Jr.) will continue on in his role as managing director of all core business units at TMG.
“The market is changing rapidly and that creates chances for us to play an active role in shaping our industry. I am very delighted to have KKR, a strong partner with media experience, by my side to create a future-oriented content company and who sees the challenges of the market as an opportunity,” said TMG CEO Kogel in a statement. “Together, we will produce first-class local content and license and distribute international feature films as well as premium series. At the same time, we want to be the ‘go-to’-partner for top-class creatives, TV channels and digital platforms in Germany.”
“I am proud of what we have achieved at TMG in the past four decades. Following much deliberation, I have decided to place my life’s work into the hands of KKR and thus to ensure that TMG, with its wonderful employees, may continue to grow and succeed,” added Kloiber.
UniCredit Bank AG Deutschland worked on the transaction team with the law firm Wirsing Hass Zoller Rechtsanwälte Partnerschaft mbB and tax consultants Dr. Kleeberg & Partner.