Interest in buy-out of Lloyd Webber’s Really Useful Group

Published Tuesday 18 January 2005 at 10:20 by Jeremy Austin

Andrew Lloyd Webber has received an enquiry for the acquisition of the entire Really Useful Group - including its theatrical division - and has appointed consultant Patrick McKenna to assess the bid.

While it has been reported in some newspapers that the group is interested in selling its drama houses the Duchess, Apollo, Garrick and Lyric theatres - something of which chief executive Andrew Ptaszynski has made no secret in the past - McKenna has been wrongly associated with this move.

Sources close to the composer have revealed that an enquiry was made to him last year for the whole of the group - of which he is the sole owner and which owns the rights to all his musicals as well as 50% of Really Useful Theatres. This is currently still being considered.

While no value has yet to be attached to the company, only the very largest multinational entertainment organisations would be able to consider the move for the business said to be worth hundreds of millions of pounds. The Phantom of the Opera is reportedly the biggest grossing artistic product worldwide and the £50million film version - financed by Lloyd Webber - is about to come into profit.

Formed in 1977 by Lloyd Webber, the international company is involved in many different aspects of the entertainment industry from film and television to magazine publishing and music publishing, owning one of the most substantial catalogues of show music in the world.

Through Really Useful Theatres it owns and manages 13 theatres and is the largest operator in the West End. As well as the four the group is interested in selling it also owns the Queens and the Gielgud. The ownership of both is due to transfer to Cameron Mackintosh in a year.

It also owns some of the best-known venues in the capital, including the London Palladium, Adelphi, Palace, Theatre Royal, Drury Lane, and Her Majesty’s. One insider described the speculation that these too will be sold as “laughable” while another said: “At this point it is unlikely they will go on to look at selling the others.”

RUG has also dismissed reports that its chief executive William Taylor has, as some newspapers have stated, “effectively resigned” over the issue. His contract expires in 2006 and he has not yet taken the option to renew it.

“Linking the sale of the houses to Bill not renewing his contract doesn’t really add up but RUG had to go on record and say that he has not renewed his contract,” said a source.