Artone Acquires Assets of UK’s Proper Music Group
Artone expands its distribution footprint to the UK, strengthening its pan-European network
Drew Hill also acquires stake in PMG assets and will remain Managing Director of Proper Music Distribution
Acquisition follows Artone’s 2024 purchase of UK D2C retailer Townsend Music
New ownership separates PMD from former Swiss parent
New multi-year lease agreement signed for PMD’s current Dartford site
Acquisition follows the Administration of the group’s holding company Proper Music Group
Artone, together with Drew Hill, have acquired the assets of Proper Music Group Ltd (PMG), including Proper Music Distribution (PMD), the UK’s leading physical distributor of independent music.
The acquisition follows the appointment of joint administrators, Mark Supperstone and Ben Woodthorpe of Evelyn Partners, to Proper Music Group on 27 February. After a competitive bidding process and the appointment of the joint administrators, certain assets were sold to Artone and Drew Hill, former Managing Director of PMG, including the shares of all companies trading under PMG – PMD, Proper Records, Proper Music Publishing and propermusic.com.
The acquisition will enable clients of both PMD (including Absolute Label Services, Believe, Cherry Red and Chrysalis/Blue Raincoat) and Artone (including Concord Music Group and Reveal Records) to unlock sweeping pan-European deals for distribution, production, packaging, retail and D2C sales.
Jan Willem Kaasschieter, CEO at Artone: "Artone has been actively looking for opportunities to expand its distribution footprint, and PMD represents a perfect fit. PMD has played a vital role in supporting independent labels and artists in the UK. By bringing PMD into the Artone family, we ensure its continued success and provide stability for its partners. Our expertise, financial strength, and extensive network will support the long-term growth of the business and maintain a strong, diverse physical music market. We look forward to working closely with Drew and the Proper team to build on its legacy."
Hill, who has been at the helm of PMD for 18 years and will remain its Managing Director, added: “In its 35 years, Proper Music Group has always strived to go above and beyond for its partners. This next step is an opportunity to secure the future of the business and continue to deliver a bespoke service to independent artists and labels. I’ve worked closely with Artone and Bertus Distribution over the years, and together we’ll continue to champion a healthy and competitive physical distribution sector which ensures diversity of choice.”
The sale has been agreed alongside the signing of a new multi-year lease for PMD’s warehouse in Dartford. Under Drew’s stewardship, the company has expanded across all divisions, and now distributes for over 5,000 independent labels and services companies.
Proper Music Group’s trading companies will no longer be affiliated with Proper Group AG (formerly Utopia Music AG), for which bankruptcy proceedings were initiated in September 2024.
Physical formats continue to enjoy a growing resurgence as a viable source of financial revenue for artists of all sizes. According to ERA, physical music revenues in the UK reached £330.1m in 2024, up 6.2% from 2023, with vinyl album sales growing faster than music streaming (7.8%) by 10.5% to £196m.
The statistics make PMD’s support for independent labels and services companies all the more important. With a 13% share of the UK’s lucrative physical music market PMD has become a celebrated bastion of the UK’s renowned independent music scene, giving clients access to retailers like Amazon, Rough Trade, HMV, Tesco, Asda and Sainsburys in the UK, and others abroad. In the last two years alone the company has paid out £63m to musicians and labels.
Mark Supperstone, Partner at Evelyn Partners and joint administrator to PMG, commented: “We are pleased to announce this sale which effectively secures the future of physical music distribution for independent labels in the UK. There was a high level of interest in acquiring the trading group and, having worked closely with Drew and his team for some time, we are pleased to complete the deal with Artone, who are able to offer many synergies that will enable the businesses to flourish in the years to come. We wish them all the best.”
Gee Davy, CEO at AIM, said: “Artone and Drew Hill’s joint acquisition of PMG’s trading companies is fantastic news for the independent community, which overperforms in its share of the physical music market. Drew’s 18 years’ experience at the helm of Proper Music Distribution combined with Artone’s pan-European expertise will no doubt ensure that the UK’s physical music sector continues to thrive.”
Kim Bayley, CEO of digital entertainment and retail association ERA, whose members account for more than 80% of sales of CDs and vinyl in the UK, added: “Independent music is a crucial part of the UK’s music ecosystem and the creative backbone of UK music. We are therefore delighted that the UK’s leading indie distributor Proper Music Group will now enjoy a new life under the capable leadership of – ERA board member – Drew Hill in partnership with Artone. Our members, particularly our 270 indie store members, wish them all the best in their new incarnation.”
About Proper Music Group
Proper Music Group is a leading full services company providing independent solutions to independent labels, including bespoke global physical and digital distribution, artist and label services, publishing and D2C.
Representing over 5,000 labels and service companies for physical distribution, and over 700 labels and 16,000 artists for digital, Proper makes up 13% of the UK music market. Its clients include Absolute Label Services, ADA, AWAL, Believe, Cherry Red, Concord, Epitaph, FUGA, Hospital, Ingrooves, Kartel, The Orchard, RSK, Snapper and SRD.
Its distribution arm, Proper Music Distribution (PMD), is renowned for its specialist knowledge and wide market reach, with payments to labels approaching £1/2bn since the company began trading in 1988.
In 2022, Proper Music Group was awarded the King’s Award for Enterprise in the International Trade category. The company was awarded Best Sales Team in 2020 & 2017 at the Music Week Awards, and Best Distributor in 2012, 2010 & 2009.
About Artone
Artone, established in 2020 and based in the Netherlands, is a leader in end-to-end physical music solutions. The company unites Bertus Distribution, one of Europe’s largest independent distributors, with Record Industry, a pre-eminent vinyl pressing plant; acclaimed labels such as Music On Vinyl and V2 Benelux; and Townsend Music, a global direct-to-fan e-commerce platform.
Artone connects artists, labels, and fans worldwide, offering a full suite of services from manufacturing to marketing and direct-to-consumer solutions. With a focus on innovation and quality, Artone is dedicated to delivering high-quality physical music products and services that drive the success of its clients in the global music market.