Universal Music Group owns the [PIAS] Group.
UMG announced it had acquired 49% of [PIAS] in 2022, following a “strategic alliance” inked between the companies the prior year.
Universal has now completed the acquisition of the remaining 51% of shares from [PIAS] co-founders Kenny Gates and Michel Lambot, for an undisclosed fee.
Universal is acquiring two core business divisions within the [PIAS] Group:
- Label services division [Integral], which provides physical and digital distribution services to independent labels;
- The [PIAS] Label Group, home to the company’s own and associated record labels, including Play It Again Sam, harmonia mundi, Demain, Spinefarm, Source and partner labels such ATO, Heavenly, Mute, and Transgressive.
Subsequent to the acquisition, [Integral] will merge with UMG’s Virgin Music Group.
The [PIAS] Label Group will continue to run as a separate and “completely autonomous” division, according to a company press release. It will become a Virgin Music Group/[Integral] client.
[PIAS] says that Kenny Gates has signed a new long-term contract to remain CEO of the company. He will lead [PIAS] Label Group and sit on the board of Virgin Music Group.
Michel Lambot is understood to be leaving his current role at [PIAS], but will continue as an advisor to the company.
Said Gates of the new deal: “I am selling my shares not my soul. Since agreeing a strategic alliance with UMG in 2021 we have found them to be supportive and engaged partners who have added real value to our offering.
“The decision by myself and Michel to relinquish our remaining shareholdings in the company is a pragmatic one that will allow us to offer a truly global distribution and services platform to the independent music community. Our existing leadership team will continue to steer our day-to-day work and nothing will change culturally or commercially for our existing clients and partners; we will still maintain the same values that we have lived by since our launch over 40 years ago.”
Michel Lambot added, “Our initial agreement with UMG in 2021 was always going to be a learning experience for both parties in terms of how we could align our individual cultures and whether that would work. If I’m honest I did have some concerns as to whether it was even possible but I’m happy to say I was wrong – our two companies have lots in common including teams that share a real passion for music and our relationship to date has been fruitful, convivial and everything we hoped it would it be.
“This new phase, which will see us working even closer together promises to be an exciting new era for [PIAS], our staff, our partners and the artists we represent.”
Sir Lucian Grainge, Chairman and CEO of UMG said, “I’ve known Kenny and Michel for decades, beginning in the 80s when we were all signing bands from emerging scenes in Europe. Since that time, Kenny and Michel have built [PIAS] into a company that stands for authenticity and the best in independent music. And it is those qualities that are not only important to me personally but that also make [PIAS] a perfect fit for UMG’s entrepreneurial and creative culture.”
Boyd Muir, Universal Music Group’s Executive Vice President, Chief Financial Officer and President of Operations said, “We are delighted by all that’s been accomplished over the past three years together, and we look forward to working with Kenny and Michel and their entire team, including their family of artists and labels, to further build [PIAS]’s legacy.
“Their experience and insights have significantly helped to grow this dynamic area of our business. Completing the acquisition of [PIAS] Label Group and [Integral] reinforces our best-in-class label services operations and enhances our ability to support the independent artist and label community globally.”
JT Myers, Co-CEO of Virgin Music Group, commented: “In [PIAS] and [Integral] Kenny and Michel have built a truly world-class operation and executive team.
“We are looking forward to working closely with them to build on their great tradition of serving music entrepreneurs around the world.”
[PIAS] is headquartered in London and Brussels with 16 offices around the world and 300 employees. It was founded by Gates and Lambot 42 years ago.
In August, MBW wrote in an analysis of UMG’s global prospects:”Of course, UMG has already made one material recent move in [Europe]: in 2022, the company acquired 49% of the Belgium-born global independent label/artist distribution network, [PIAS].
“That minority acquisition arrvied just as a 10-year restriction on Universal, preventing it from acquiring significant music companies within the EU, was lifted. (Said restriction was a hangover from UMG’s industry-changing buyout of EMI Music in 2012.)
“With those regulatory handcuffs now removed, and with Europe leading Spotify’s net subscriber additions over the past year, might UMG become tempted by more acquisitive opportunities in the region?”Music Business Worldwide