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Cinram Novum is a warehouse, fulfilment and distribution firm that provides services to independent and major record labels across the UK. Some of its clients include Sony Music Entertainment, Universal Music Group, Cargo Records, Trinity Creative Partnership, 88 Films and other large retailers and artists. As a result of the deal, Utopia claims that 300 jobs will be secured as it takes over the business and various assets of Cinram through its UK-based Utopia Distribution Services unit.
“The loss of Cinram Novum would have been detrimental to the entire UK music industry, resulting in financial losses and disruption for labels, retailers, artists and their fans,” said Utopia Music COO Roberto Neri in a statement. “Through this acquisition, our intention is that Utopia can secure Cinram’s future and safeguard the UK music industry.”
Rick Harrison, managing director at Interpath Advisory, said: “We are delighted to have delivered this transaction which secures the future of the Cinram Novum business, providing a new platform on which it can move forward. We would like to thank the teams at Cinram and Utopia, as well as music labels and other customers across the entertainment industry, for their tremendous support during the sales process. We wish Utopia every success for the future.”
The purchase of Cinram comes as part of Utopia’s stated effort towards optimising the music ecosystem, which will also involve minimising its carbon footprint. MBW recently reported that Utopia is raising €300 million in a Series C funding round, valuing it at around €2.5 billion.
Shoosmiths advised Interpath on the transaction, led by partner Bethan Moore and principal associate Lizzy Wood.
Utopia Distribution Services was advised by associates of DLA Piper.
