[PIAS] co-founders Kenny Gates & Michel Lambot announce sale of remaining shareholding to Universal Music Group

15 October 2024 - Press release

[Integral] & Virgin Music Group to join forces  

[PIAS] Label Group to remain fully autonomous

 

[PIAS] founders Kenny Gates and Michel Lambot have announced their decision to sell the remaining shares they hold in the company to Universal Music Group (UMG).

[PIAS] one of the world’s leading music companies and UMG, the world leader in music-based entertainment, announced a strategic global alliance in 2021. Under this agreement Kenny Gates and Michel Lambot sold a minority shareholding in the [PIAS] Group to UMG.

The [PIAS] Group operates two core business divisions: the [PIAS] Label Group, home to the group’s own and associated record labels and [Integral], the group’s services division which provides physical and digital distribution services to independent labels from around the world.

As part of the new agreement, [Integral] and Virgin Music Group will join forces. The combined teams will provide independent entrepreneurs with world class services and access to a bespoke, stand-alone international distribution network.

The [PIAS] Label Group, which is home to the company’s in-house and cooperative labels, will remain completely autonomous. The Label Group which includes labels such as Play It Again Sam, harmonia mundi, Demain, Spinefarm, Source and partner labels such ATO, Heavenly, Mute and Transgressive has enjoyed numerous success stories recently with artists including Nick Cave & The Bad Seeds, Kneecap, Sofiane Pamart, Sleep Token, Arlo Parks and Black Pumas.

Kenny Gates, who has signed a long-term contract to remain as CEO of [PIAS] and will also sit on the Virgin Music Group main board and advisory group said, “I am selling my shares not my soul. Since agreeing a strategic alliance with UMG in 2021 we have found them to be supportive and engaged partners who have added real value to our offering. The decision by myself and Michel to relinquish our remaining shareholdings in the company is a pragmatic one that will allow us to offer a truly global distribution and services platform to the independent music community. Our existing leadership team will continue to steer our day-to-day work and nothing will change culturally or commercially for our existing clients and partners; we will still maintain the same values that we have lived by since our launch over 40 years ago.”

Michel Lambot co-founder of [PIAS] added, “Our initial agreement with UMG in 2021 was always going to be a learning experience for both parties in terms of how we could align our individual cultures and whether that would work. If I’m honest I did have some concerns as to whether it was even possible but I’m happy to say I was wrong – our two companies have lots in common including teams that share a real passion for music and our relationship to date has been fruitful, convivial and everything we hoped it would it be. This new phase, which will see us working even closer together promises to be an exciting new era for [PIAS], our staff, our partners and the artists we represent.”

Lucian Grainge, Chairman and CEO of UMG said, “I’ve known Kenny and Michel for decades, beginning in the 80s when we were all signing bands from emerging scenes in Europe.  Since that time, Kenny and Michel have built [PIAS] into a company that stands for authenticity and the best in independent music.  And it is those qualities that are not only important to me personally but that also make [PIAS] a perfect fit for UMG’s entrepreneurial and creative culture.”

Boyd Muir, Universal Music Group's Executive Vice President, Chief Financial Officer and President of Operations said, “We are delighted by all that’s been accomplished over the past three years together, and we look forward to working with Kenny and Michel and their entire team, including their family of artists and labels, to further build [PIAS]’s legacy. Their experience and insights have significantly helped to grow this dynamic area of our business. Completing the acquisition of [PIAS] Label Group and [Integral] reinforces our best-in-class label services operations and enhances our ability to support the independent artist and label community globally.” 

“In [PIAS] and [Integral] Kenny and Michel have built a truly worldclass operation and executive team,” said JT Myers, Co-CEO of Virgin Music Group. “We are looking forward to working closely with them to build on their great tradition of serving music entrepreneurs around the world.”