Ryman Hospitality Properties (RHP) has announced that Atairos, an independent strategic investment company, and NBCUniversal will acquire a 30% minority ownership stake in RHP’s subsidiary OEG Attractions Holdings LLC, which owns the assets that comprise Opry Entertainment Group.
Atairos’ investment values OEG at $1.415 billion, inclusive of OEG’s previously announced acquisition of Block 21. Atairos has agreed to make an additional $30 million investment in OEG, contingent on certain performance targets being achieved, which would bring OEG’s valuation to $1.515 billion.
Upon completion of the transaction, Ryman Hospitality Properties will retain a controlling 70% interest in OEG. Colin Reed will serve as Executive Chairman of OEG in addition to his responsibilities as Chairman and Chief Executive Officer of RHP.
In connection with the investment, Atairos will enter into an LLC agreement with RHP and OEG upon the closing, pursuant to which Atairos Partners Alex Evans and Jackson Phillips will join OEG’s Board of Directors.
The transaction is expected to close in the second quarter of 2022.
“Over the last decade we have shared our excitement about the bright future of our entertainment business and the significant value creation opportunities that exist as we extend our reach nationwide and transition OEG to an integrated country lifestyle platform,” says Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties. “Back in June 2021, given the unsolicited interest we had received, we embarked on a formal process to identify a strategic partner that shares our vision for growing OEG to a position where it can operate independently of our core hospitality business while enabling our shareholders to participate in the significant upside for OEG that lies ahead.”
Reed continues, “Atairos and NBCUniversal have a great appreciation for the legendary assets under our stewardship and we are aligned on protecting and nurturing them for future generations of music lovers to enjoy. We view this partnership as a significant opportunity to strengthen these beloved institutions and cement their influence on American music culture. We remain focused on creating sustainable long-term value for our shareholders as we seek new ways to connect artists and fans through one-of-a-kind experiences.”
Michael Angelakis, Chairman and CEO of Atairos, shares: “OEG’s dynamic collection of entertainment venues, digital content and iconic country music brands provide a strong foundation for continued growth as a fully-integrated country lifestyle platform. We are excited to partner with the RHP and OEG teams to explore new content distribution strategies and support their ambition of becoming the leading player in country lifestyle live entertainment and media content.”
“We are excited to invest in OEG alongside our strategic partner Atairos,” David Pietrycha, Executive Vice President, Strategy and Business Development at NBCUniversal adds. “We look forward to exploring opportunities to leverage our media, technology and content creation expertise to help OEG accelerate its plans and bring its iconic brands, as well as artists and storied cities, to music lovers worldwide.”
The post Atairos & NBCUniversal Plan Strategic Investment In Opry Entertainment Group appeared first on MusicRow.com.