AID Partners buys HMV's Asia operations

Details of the transaction were not disclosed. As part of the deal AID partners will inject new capital and provide financial backing to the business as the sole shareholder. The management team remains unchanged.

HMV currently has six stores in Hong Kong and two in Singapore, plus an e-commerce business in Hong Kong. It has an aggregate annual turnover of more than HK$300 million, selling ntertainment-related products such as CDs, DVDs, games, books and electronic appliances.

The Asian business is a legally separate entity from HMV in the UK, which went into administration last month.

"HMV is a legendary brand and its business in Hong Kong and Singapore is still very strong, and we see many exciting opportunities ahead, including Greater China, where we would be able to leverage AID Partners' deep experience and extensive connections in the entertainment industry. It's essentially a perfect fit," said Kelvin Wu, principal partner of AID.

Emily Butt, managing director of HMV in Hong Kong and Singapore, noted that business continues to grow despite the launch of iTunes in Asia last year.

"We have been looking at how to best take our strategy to the next level and with AID Partners we now have the ability to do so as effectively as possible," she added.

This is not the first time an HMV affiliate in Asia has been the target of private equity investment. In 2010, Daiwa SMBC Principal exited HMV Japan to Japanese convenience store chain operator Lawson for around $22 million. Daiwa acquired a 100% stake in HMV Japan in 2007 through a carve-out from the company's UK parent.

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• Topics
• Buyouts
• Greater China
• Southeast Asia
• Consumer
• Media
• AID Partners
• China
• Hong Kong (China)
• Singapore
• buyout
• Consumer