Fosun to support Cirque du Soleil's China expansion

The financial details were not disclosed but the deal is understood to value the business at $1.5 billion. TPG will own 60% while Fosun will take a 20% stake. The remainder is held by Canadian pension fund Caisse de dépôt et placement du Québec, and Cirque du Soleil founder Guy Laiberte, each of which has 10%.

Montreal-headquartered Cirque was set up in 1984 when a troupe of street performers secured funding from the Canadian government to take their show on tour. Today the company claims to employ more than 4,000 people, including 1,300 performers, and holds shows across the world. It currently runs six global touring shows, and nine resident shows in the US.

Aside from generating income via tickets sales, Cirque also makes money through private events, show-related merchandising, and by licensing its brand to the hospitality and fashion industries. The company makes make about $1 billion in revenue annually.

However, Cirque has fallen on difficult times in recent years. In 2012 it was reported to have cut 400 staff after failing to make a profit for the first time in its history. The company was then rocked by its first mid-show death in 2013, when an acrobat fell doing a stunt in Las Vegas.

According to a previous report by The Wall Street Journal, revenues fell to $850 million in 2013 from $1 billion in 2012, though previous cost-cutting measures meant the company turned a profit for that year.

In a statement, the circus group said the new deal would not only allow greater access to the Chinese market but also allow it to expand its consumer brands and media partnerships; and expand its offering through third-party intellectual property deals, digital media and ticket sales, and increased licensing.

"To date, Fosun has established a global prototype for platforms that capture lifestyle trends in China. Building on top of this model, we have an objective to become one of the global leaders in businesses driven by lifestyle needs, which are quickly taking root in China," said Guangchang Guo, chairman of Fosun. "The performances of Cirque are very attractive and are a standard bearer for the quality content expected by global citizens."

This is Fosun's third overseas investment in the entertainment and leisure sector in the last three months. In March it acquired a $138 million stake in UK-based travel company Thomas Cook, while in February it led a consortium that bought French vacation resort operator Club Méditerranée for EUR939 million ($1.1 billion) following a two-year battle.

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• Topics
• Buyouts
• Greater China
• North America
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• buyout
• China
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• Fosun Group
• TPG Capital