Private Equity giant Providence has acquired a controlling stake in New York-headquartered Global Critical Logistics.
News of GCL’s acquisition will be of interest to the music industry, and particularly the live music industry, because it is the parent of Rock-it Cargo, a prominent player in the world of logistics for tours by superstar artists.
Rock-it started out over four decades ago, moving gear around the world for artists like Led Zeppelin, Queen and Bruce Springsteen. In more recent years, the company has worked on tours for superstars from Beyoncé to Taylor Swift.
The WSJ, which broke the news of the deal ahead of its official announcement on Wednesday (May 21) morning, said that GCL was involved in Taylor Swift’s most recent Eras tour.
ATL Partners, GCL’s former majority owner, will retain a minority equity stake. GCL will continue to be led by President and CEO Daniel Rosenthal.
The financial terms of the transaction were not disclosed. The Wall Street Journal reported that the deal was worth more than $1 billion.
Providence’s acquisition of New York-headquartered GCL marks the latest big-money deal in the broader live events sector, and the latest evidence of Private Equity’s continued interest in this space.
Last summer, as reported at the time by Bloomberg, Goldman Sachs acquired a majority interest in a live events staging company called TAIT, which also reportedly worked on Taylor Swift’s Eras Tour.
Also last summer, GCL’s new backer, Providence, sold European festival organizer Superstruct to fellow private equity giant KKR in a $1.4 billion deal.
Another investment giant, CVC, also invested in Superstruct, joining KKR‘s ownership of the promoter.
In January, KKR-owned Superstruct acquired live events platform Boileroom from UK-born ticketing firm DICE, which has itself raised over $200 million to date.
DICE’s Boiler Room divestment arrived six months after Bloomberg reported that DICE was in talks with PE firms to sell a significant stake in its company, potentially valuing it at “hundreds of millions of dollars.”
Elsewhere in the live industry, concert promoter Live Nation counts investment giants such as BlackRock and the Vanguard Group amongst its owners.
Meanwhile, Providence’s own portfolio of live events and live events-adjacent companies still includes venue operator ATG Entertainment, as well as Populous, a design and architecture firm for stadia, arenas, convention & exhibition centers (COEX) and entertainment venues.
In the wider music industry, the private equity firm was behind Tempo Music, the music rights acquisition fund launched in partnership with Warner Music Group in 2019.
WMG recently acquired a controlling stake in Tempo, with Tempo’s previous owner, Providence, holding on to a minority stake in Tempo as part of the deal.
Providence also invested in music instrument and audio equipment retailer Sweetwater in 2021, and in Hollywood talent agency Wasserman in 2022.
“For nearly 50 years, GCL has earned the trust of the world’s biggest names in live events and established a leading position in all of the end markets it serves.”
Scott Marimow, Providence
Commenting on the investment company’s latest deal with Critical Global Logistics, Scott Marimow, Managing Director at Providence, said: “For nearly 50 years, GCL has earned the trust of the world’s biggest names in live events and established a leading position in all of the end markets it serves.
“We have a deep appreciation for and understanding of the business, especially given our long history of investing in entertainment and sports. We look forward to partnering with Dan and the GCL team to help capitalize on organic and inorganic growth opportunities ahead.”
“Providence’s commitment validates our customer focus and growth strategy and will expand our capabilities in the years ahead.”
Daniel Rosenthal, GCL
Daniel Rosenthal, GCL President and CEO, added: “GCL is a very special company supported by an incredible family of employees, customers and partners across its global network.
“Providence’s commitment validates our customer focus and growth strategy and will expand our capabilities in the years ahead,”
“The Providence team’s proven track record and relationships in our end markets make them the ideal partner for the next chapter of serving our customers.
“I’m also extremely grateful to the team at ATL Partners for their deep passion to propel our growth strategy. Under ATL’s active stewardship during the last seven years, GCL has expanded into adjacent verticals and is the clear market leader in live events and luxury goods logistics.”
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