The private equity owner of festival operator Superstruct should formally launch a sale of the business in the next month, according to sources who spoke to Reuters. The festival business could be valued at £1.5 billion.
Providence teamed up with Creamfields founder and former Live Nation exec James Barton to launch Superstruct in 2017. It has become a major player in the festivals market through a long series of acquisitions of existing events in Europe and Australia.
According to Reuters’ sources, Providence has been planning a sale since last year, seeking to capitalise on the bounce back of live music following the COVID-19 pandemic. Of course, that bounce back has mainly been at the upper end of the live sector, with many smaller and independent festivals struggling amid surging production costs and the cost of living crisis.
That said, those challenges do give festivals that are part of a bigger network an advantage, because of economies of scale and the financial security a parent company can offer in a sector where managing cash flow can be tricky. Indeed, it’s often that financial security that persuades the founders of independent festivals to seek an alliance with a bigger player like Superstruct.
There could be plenty of interest in acquiring the Superstruct business, mainly from other investment funds. Reuters reports that Blackstone, CVC, KKR and EQT are all possible bidders. Advance Publications, owner of the Condé Nast media company, is also reportedly interested.
Among the festivals in which Superstruct has a stake are Sonar, Elrow, Sziget, Snowbombing, Benicàssim and - in the UK - Y Not, Truck, Nass, Bluedot, Victorious, Kendal Calling and Boardmasters.
