KKR acquires Tele-Munich Group
Frankfurt a. M. / Munich — The US private equity investor KKR is taking over Tele München Gruppe (TMG). Accordingly, the US financial investor is buying TMG from the well-known media entrepreneur Herbert Kloiber, who owned the company for 42 years. Following approval by the antitrust authorities, the deal is expected to be completed in April. TMG was advised on this transaction by Wirsing Hass Zoller (Legal), and Kleeberg & Partner (Tax).
KKR made the investment from European Fund IV. A KKR spokesman did not want to comment on the purchase price or other transaction details in response to a FINANCE inquiry. According to the company’s own figures, TMG most recently generated total operating performance of 520 million euros with around 1,800 employees. Founded in 1977, the Group produces films, trades in broadcasting licenses and holds stakes in TV stations RTL II and Tele 5, among others.
There will be changes in the management of TMG as a result of the takeover by KKR. Thus, the new owner makes the former CEO of Constantin Medien, Fred Kogel, the new Managing Director. According to a press release from TMG, however, Kloiber junior will also remain the managing director of the “core companies”. Herbert G. Kloiber is to serve as a member of an advisory board, and will also remain a member of the Supervisory Board of Odeon Film AG until the upcoming Annual General Meeting. As always with such deals, the sale still has to be approved by the authorities. The two parties did not provide any information on the purchase price.
He headed Tele München Gruppe for 42 years, and now Herbert G. Kloiber is selling the group to financial investor KKR. This move also has implications for some German broadcasters and production companies. For example, TMG holds 31.5 percent of RTL II together with Disney, while Tele 5 is wholly owned by the Group. TMG also holds a majority stake in Odeon Film AG, while other subsidiaries such as Concorde Filmverleih GmbH, Concorde Home Entertainment GmbH, Clasart Film- und Fernsehproduktions GmbH and Tele München International GmbH now also have a new owner.
KKR now wants to make Tele München Gruppe the leading independent platform for audiovisual content in Germany and a central point of contact for creative talent. The German market offers an “attractive environment to further develop TMG as an independent, market-leading platform and to reposition it in times of digital disruption,” the private equity firm says. As consumer demand for high-quality, local but also international content grows, so does the need for “a large independent German content platform.”
“TMG is an attractive middle-market asset and definitely fits KKR’s middle-market strategy,” the spokesperson said. About a year ago, KKR also opened an office in Germany with Christian Ollig (photo) as head. The deal was executed jointly from the London and Frankfurt offices, according to the spokesperson. Philipp Freise was responsible for the transaction. The long-time KKR manager specializes in investments in the media sector.
Advisors TMG: Wirsing Hass Zoller (Legal), and Kleeberg & Partner (Tax)
KKR is a leading global investor that invests in diverse asset classes, including private equity, energy, infrastructure, real estate, credit products and, through strategic partners, hedge funds. The focus is on generating attractive investment returns via a patient and disciplined investment approach, employing highly skilled professionals, and creating growth and value in investment properties. KKR invests its own capital together with the capital of its partners and opens up interesting development opportunities for third-party companies through its capital markets business. References to KKR’s investments may also refer to the activities of funds managed by KKR. More information about KKR & Co. Inc. (NYSE: KKR) can be found on the KKR website at www.kkr.com and on Twitter @KKR_Co.
Tele München Gruppe (TMG) is an integrated media company that has now been operating successfully on the market for over 45 years and combines all audio-visual exploitation stages under one roof. Over the years, the production company evolved into a group of companies that is now one of the next generation content providers. With approximately 3,200 active titles in its program library, TMG is one of the largest license trading houses in Europe and one of the most renowned players on the international market. TMG is present with its subsidiaries in film and TV production and as a program provider in the cinema, home entertainment, TV and VOD sectors. TMG has been operating FILMTASTIC, its first own SVOD channel, since May 2017. FILMTASTIC is available on Amazon Prime Video Channels, on Rakuten TV and waipu.tv. TMG holds stakes in the national free TV stations TELE 5 and RTL II in Germany, in the leading U.S. production company Storied Media Group and in the digital production and distribution company Load Studios. In addition, TMG is the majority shareholder of the listed German production company Odeon Film AG.