CVC Wins Battle For Euro Theatre Giant Stage

The private equity firm which is the largest shareholder in Formula One motor racing is close to striking a deal to invest in Stage Entertainment, the theatre company behind Made (Paris: FR0010328302 - news) in Dagenham.

Sky News has learnt that CVC Capital Partners has been granted a period of exclusivity to negotiate the terms of a partnership with Stage's founder Joop van den Ende, who was one of the brains behind Endemol, the content production giant.

CVC is understood to be proposing to acquire a 60% stake in Stage, which includes Made in Dagenham, starring British actress Gemma Arterton, among its hit productions.

Mr van den Ende is expected to retain the remaining shares following the deal, which sources say could be worth around €400m (£286m).

CVC had been bidding against Ambassador Theatre Group, the biggest player in the West End's theatre scene, which was itself acquired last year by Providence Equity Partners, another buyout firm.

In addition to Made in Dagenham, Stage is behind forthcoming UK and Ireland (Other OTC: IRLD - news) tours of Anything Goes, Singin’ in the Rain and the annual national arena tour of Strictly Come Dancing Live!.

It also manages a production of Memphis, which is due to open at the Shaftesbury Theatre in the Autumn.

The company employs more than 3,500 people around the world, with more than 10 million people visiting a Stage Entertainment production or performance space each year, according to the company.

The partnership with CVC (Taiwan OTC: 4744.TWO - news) will crystallise another massive payday for Mr van den Ende, who co-founded Endemol, the creator of Big Brother, in 1993.

Endemol's live entertainment business was subsequently transferred into Stage Entertainment, which now makes roughly €40m (£28.6m) in profit annually.

CVC's prospective deal with Stage is likely to require the consent of Disney Theatrical Production, with which it has an agreement to license popular shows such as The Lion King and Aladdin.

A CVC spokesman declined to comment on Wednesday.