Sony Music’s Thread Shop has made an agreement to acquire the music merchandise division of the Araca Group.
Araca’s music merchandising roster includes a range of artists such as Led Zeppelin, Pink, Shania Twain, Sugarland and Zayn.
Richard Story, president, Commercial Music Group, Sony Music Entertainment, said: “As artists continue to seek out merchandising opportunities to complement their music revenues, branding, and marketing, Sony Music is significantly expanding its presence in this growing area of the business under the leadership of Howard Lau. The acquisition of the Araca Group’s music merchandise division will further strengthen the Thread Shop’s artist roster and infrastructure and the competitive capabilities we offer to the music community.”
Michael Rego, CEO of the Araca Group added, “We are thrilled at the opportunity this acquisition provides for our music merchandise division. The team at The Thread Shop is artist-focused, passionate and well positioned to build upon the merchandising programs that Araca has created for our music clients.
In connection with the acquisition, several members of the Araca Group’s music merchandising team will join the Thread Shop to continue active relationships and develop new opportunities for the integrated roster.
The deal significantly expands the reach of Sony Music’s in-house merchandising business.