Deutsche Entertainment AG – Expansion and Acquisitions
http://www.deag.de
Business Case:
In late 2006, the DAM Capital group was approached by Deutsche Entertainment AG (DEAG), a leading German live concert and classical music promoter. Given the considerable degree of volatility in the live entertainment business, DEAG found it much more complicated to raise further expansion capital to finance attractive acquisitions or fund major artists for live-concert opportunities to grow its core business. Traditional debt providers were unwilling to lend, as there is little visibility to projected revenues in the concert promotion business. As a result, DEAG needed to find a lender with insight into their industry sector.
Tailoring the Solution:
DAM Capital group's investment professionals were able to evaluate the Company's strategy to pursue classical music, which has a growing audience with attractive demographics, backed up by the entertainment industry knowledge from other Anschutz businesses. While other traditional lenders were unable to support DEAG's market opportunity, the DAM Capital group quickly provided the necessary expansion capital to support their growth initiatives.
Accelerating Results:
Today, beside its other entertainment business, DEAG is positioned as the leading classical music promoter in Germany and is promoting tours with top stars, including Anna Netrebko, Elina Garanca, Lang Lang, Rolando Villazón and Edita Gruberova. The sales revenues of DEAG's classical music division are expected to double to well over €10 million in 2007 and earnings per share have increased 50% over the past year. In 2006, DEAG had total sales revenues of €83 million.