Struggling entertainment retailer HMV has sold its live music business Mama Group for a net cash consideration of £7.3m.
HMV has sold the business to Juno Newco, a wholly owned subsidiary of private equity house LDC. The deal includes Mama Group’s subsidiaries and its separately held interest in 50% of ticket seller business Mean Fiddler Group.
A chunk of the acquisition cash, £3.5m, will be deferred for 12 months and the proceeds of the sale will be used to reduce the company’s debt.
Mama Group is comprised of live music venues, artist and producer management services and consumer services, which includes the operation of magazine The Fly. The live music venues owned by Mama Group include HMV Forum, the Jazz Café, The Garage and The Borderline, all located in London.
The deal does not include the sale of GAY Group and Heaven (London), which are to be the subject of a separate transaction.
This sale is a further step in the disposal of the HMV Live busines. HMV sold the Hammersmith Apollo for £32m in June.
HMV also sold its Waterstones book chain last year in a bid to pay down debt.