Private equity giant Blackstone is nearing the final stages of negotiations to acquire a minority stake in Ambassador Theatre Group, which owns West End venues such as the Duke of York’s and Lyceum theatres, according to a report by Sky News.
The deal will see Blackstone acquire a 10% to 15% stake from TEG, an Australian live entertainment and ticketing company that invested in ATG during the pandemic.
Providence Equity Partners, ATG’s majority owner since 2013, had contemplated a sale prior to the pandemic but was thwarted by the ensuing closures of theatres and live entertainment venues. ATG has maintained its prominence despite these challenges, operating around 60 theatres across the UK and internationally.
In 2021, ATG expanded its footprint by acquiring the Golden Gate Theatre and Orpheum Theatre in San Francisco, as well as the Fisher Theatre in Detroit. Last year, it bolstered its US operations by merging with Jujamcyn Theaters.
ATG faces competition from notable entities like Lord Lloyd Webber’s Really Useful Group and billionaire Sir Leonard Blavatnik’s Theatre Royal Haymarket. The valuation of ATG in Blackstone’s impending deal remains undisclosed, but Providence initially acquired the company for £350m over a decade ago. In 2022, ATG reportedly sought to refinance approximately £1.2bn of debt.
Financial records for its parent company, International Entertainment Holdings, indicate a record operating profit of £120.5m for the year ending March 25, 2023, with advance ticket sales surpassing pre-COVID levels.
ATG’s venues host blockbuster productions like Hamilton, Harry Potter and the Cursed Child, The Book of Mormon, The Lion King, Les Miserables and Wicked. The company was founded in the 1990s by Sir Howard Panter and Dame Rosemary Squire. ATG is currently led by Ted Stimpson, who succeeded Mark Cornell, and employs over 4,000. Its portfolio includes the Harold Pinter Theatre, Liverpool’s Empire, and the Lyric and Hudson theatres on Manhattan’s Broadway.
