Roth CH Acquisition II in an 8-K filing said that its merger partner Reservoir Holdings has agreed to purchase U.S. based record label and music publishing company Tommy Boy Music for $100 million.
The Roth/Reservoir deal has an enterprise value of $788 million, the parties said in April. Existing Reservoir owners will roll 100 percent of their equity into the combined enterprise.
Institutional investors, including funds managed by Caledonia, will participate in a common stock PIPE of $150 million at $10 per share. Following the transaction and after expenses, Reservoir is expected to receive approximately $246 million.
Tommy Boy helped launch the careers of Queen Latifah, Afrika Bambaataa, Digital Underground, Coolio, De La Soul, House of Pain and Naughty By Nature. Two of Reservoir’s board members, Stephen Cook and Ryan P. Taylor, are also board members of Tommy Boy and have an equity interest in both companies. Read more.
