KKR is betting big on the sports industry as the U.S. private equity giant finalises the acquisition of Arctos: a key investment vehicle of professional sports franchises.
The transaction is valued at $1.4B in initial consideration, including equity subject to vesting through 2033 in addition to a extra $550M in future equity tied to KKR share price and business KPIs (2031).
Robert Lewin, CFO of KKR, announced the acquisition underlining the mutual benefit of the latest acquisition: “bringing Arctos into KKR will provide access to capital and capabilities that will fuel the growth of Arctos’ existing businesses while also deepening KKR’s sourcing, origination capabilities whilst expanding our long-duration capital base,” Lewin said.
Arctos owns stakes in over two dozen sports teams, including a 10% stake in the NFL’s Buffalo Bills, and over $15B in Assets Under Management (AUM).
The deal will grant KKR a significant foothold in the professional sports industry in the U.S.
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