The federal government has approved the previously announced sale of Cirque du Soleil to U.S. private equity firm TPG Capital and its Chinese partner. Industry Minister James Moore said TPG has made a number of related commitments, such as ensuring the live performance company will keep its strategic decision-making and creative and artistic development in Montréal. In April, Cirque founder Guy Laliberté agreed to sell control of the business for an estimated US$1.5 billion. As part of the buyout deal, the Caisse de dépôt et placement du Québec will assume a minority stake.
Statement by Industry Minister James Moore on the Proposed Acquisition of Cirque du Soleil
Ottawa, June 30, 2015—Today, Industry Minister James Moore made the following statement on TPG VII CDS Holdings, LP’s application under the Investment Canada Act to acquire control of Cirque du Soleil:
“TPG’s application to acquire control of Cirque du Soleil has been approved.
“Foreign investment transactions are reviewed on their merits and overall economic benefit for Canada.
“As a result of this transaction, and in consultation with the Government of Quebec, TPG will commit to the following:
ensure that Cirque maintains strategic decision making and creative and artistic development at its headquarters in Montréal;
ensure that at least 70 percent of Cirque’s senior management in Canada is Canadian;
continue supporting the growth of Cirque du Soleil’s core business, while seeking to expand opportunities for employees based in Quebec and across Canada;
maintain significant Canadian presence on the leadership team of Cirque du Soleil and on its Board of Directors;
actively support the continued growth and vitality of Quebec’s flourishing creative arts community through funding for cultural and community organizations, provide continued support for Cirque du Monde, and maintain funding for the research activities of the creative laboratory of Cirque du Soleil; and
provide annual progress reports to the Canadian government regarding compliance.
“As part of the compliance process, the Government of Canada will consult with the Government of Quebec regarding the implementation of these conditions.”
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Office of the Minister of Industry
Photo courtesy of Reuters/Mike Blake