BMG and KKR have acquired all of ZZ Top’s music interests, including the band’s publishing catalog and recorded music royalties, according to an announcement from the two companies. Terms of the deal were not disclosed.
According to the statement, the band has sold over 50 million albums worldwide, earning one diamond album, and two multi-platinum albums along the way since forming in 1971. For the last four years, ZZ Top’s album catalog has averaged close to 300,000 album consumption units a year, according to MRC Data.
BMG and KKR, which had partnered a little over a decade ago, from about 2009 through 2013 when the music company was being relaunched, joined forces again earlier this year. This appears to be their first deal, or at least first announced one, under the new arrangement.
“This deal is a testament to the success, staying power and continuing musical relevance of ZZ Top, but also to the power of our partnership with KKR,” BMG CEO Hartwig Masuch said in a statement. “This agreement furthers our vision of providing artists and songwriters not just a financial exit, but also a vehicle committed to respecting and treasuring their artistry.”
At the same time, KKR also has partnered with Dundee Partners, the investment office of the Hendel Family, in an investment vehicle that they have named Chord Music Partners. So the KKR participation in this deal is with Dundee Partners, and made through Chord Music Partners structure.
In October, Chord Music Partners acquired a Kobalt music catalog on their own in a $1.1 billion blockbuster deal; while in the same month BMG on its own acquired Tina Turner’s music interests including her recorded master royalties, the writer’s share of songs she wrote or co-wrote and neighboring rights.
BMG served as co-publisher and administrator publishing catalog for the Rock And Roll Hall of Fame-inducted band, which had a documentary on the rockers issued this year.
“We are excited to invest in ZZ Top’s iconic music and we look forward to collaborating with BMG and ZZ Top to further amplify the reach of their catalogue,” KKR partner Jenny Box said in a statement.
ZZ Top manager Carl Stubner of Shelter Music Group said in a statement, “We are proud to continue working with and expand our long-standing relationship with BMG. This new deal ensures ZZ Top’s remarkable legacy will endure for generations to come.”
ZZ Top’s longtime bassist Dusty Hill died earlier this year, at the age of 72.
The band has landed seven albums on the Billboard 200‘s top 10: Tres Hombres at No. 8 in 1974, Fandango! at No. 10 in 1975, Eliminator at No. 9 in 1983, Afterburner at No. 4 in 1985, Recycler at No. 6 in 1990, Greatest Hits at No. 9 in 1992, and La Futura at No. 6 in 2012. They were inducted into the Rock Hall in 2004 and received three Grammy nominations.
