Cirque du Soleil’s time as a Canadian-owned institution – c'est fini?
The Montreal-based performance entertainment company announced April 20 it has reached an agreement to sell a majority stake to American investment firm TPG.
Chinese investment group Fosun is also acquiring a minority stake in the circus group, however, ownership will not be completely foreign-backed.
Quebec pension fund manager Caisse de depot is also acquiring a minority stake and Cirque du Soleil founder Guy Laliberté will maintain a minority stake as well.
"After 30 years building the Cirque du Soleil brand, we have now found the right partners in TPG, Fosun and the Caisse to take Cirque du Soleil forward to the next stage in its evolution as a company founded on the conviction that the arts and business, together, can contribute to making a better world," Laliberté said in a statement.
"Just as importantly, I am thrilled that the investors have demonstrated such a strong commitment to Cirque's unique Quebec cultural heritage and the creativity and imagination of our people."
As rumours of a sale persisted last week, the Quebec government voiced concerns the deal would result in an erosion of jobs in the province.
The deal, which is expected to close in the third quarter, ensures the group will remain headquartered in Montreal and Quebec businessman Mitch Garber will become Cirque’s chairman.
The investors group said it plans to push Cirque’s expansion into China and add jobs in Quebec.
Terms of the sale were not disclosed, however, the Globe and Mail reported the deal was worth about $1.5 billion.
