Start of a new era as Chrysalis gives nod to takeover

The group is to be bought by German rival Bertelsmann Media Group (BMG) and private equity group Kohlberg Kravis Roberts.

Chris Wright, founder of Chrysalis, said the deal marks "the end of one era and the start of another" for the firm.

BMG – which has a catalogue including Coldplay, Britney Spears and Westlife – said the acquisition will enhance its position as a leading music rights publisher and expand its offering to music customers worldwide.

Chrysalis was founded in 1969 and now operates in the areas of music publishing, music recording, artist management and entertainment product distribution.

It has a 70,000-strong catalogue of music copyrights from legendary artists and up and coming performers.

The announcement comes just weeks after Chrysalis confirmed deal talks following mounting speculation it was searching for a buyer.

Chrysalis reportedly shelved sale plans three years ago just before the credit crunch, having already sold off its recording and radio businesses.

It sold the record label to EMI in 1991 and then offloaded the radio division, including Heart and Galaxy, for 170m to Global Radio in June 2007 to focus on publishing.

The music publishing sector has been taking off in recent years through the use of music in films, mobile phone ringtones and adverts.

Mr Wright, who is chairman of Chrysalis, said: "Our continued progress – evolving from management, recorded music, television and radio to focus on music publishing – has been clearly recognised by BMG.

"As we embark together on the next chapter of the Chrysalis story, I am proud of both our track record and our future prospects in an industry in which we have both innovated and pioneered."

Mr Wright – former owner of Queens Park Rangers and London Wasps – has been offered to join the supervisory board of BMG and to become non-executive UK chairman of BMG following the deal.

He bought out his ex-partner and co-founder Terry Ellis in 1985.

sound of music: Michael Jackson's songs feature in the back catalogue of Chrysalis. The company has said yes to a 107.4m takeover offer from German rival BMG.picture: pa wire