UK-based physical distributor Proper Music acquired by Netherlands’ Artone

UK-based Proper Music Group Ltd (PMG) went into administration on Friday (February 28). The company’s assets, including physical distributor Proper Music Distribution (PMD), have been acquired by Netherlands-based distributor Artone.

Proper says that it distributes physical music for over 5,000 independent labels and services companies and claims to have a 13% share of the UK’s physical music market.

The company reports to have paid out £63 million to musicians and labels in the last two years.

News of Proper Distribution’s acquisition by Artone marks the end of its tumultuous association with Switzerland-born Utopia Music.

According to the announcement on Friday (February 28), Proper Music Group’s trading companies will no longer be affiliated with Switzerland-headquartered Proper Group AG, formerly known as Utopia Music, for which bankruptcy proceedings were initiated in September 2024.

The ‘Proper’ name was adopted by Utopia around two years after it acquired Proper Music Group (in January 2022), when Utopia expanded into physical and digital music distribution. It was reported in March 2024 that Utopia was changing its name to Proper Group.

Drew Hill, who has led Proper Music Distribution for 18 years, will remain its Managing Director. Hill has also acquired a stake in the PMG assets.

Friday’s press release added that 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”.

According to Proper, the sale has been agreed alongside the signing of a new multi-year lease for PMD’s warehouse in Dartford, in the UK.

“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.”

Drew Hill

Hill said: “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.

”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.

“By bringing PMD into the Artone family, we ensure its continued success and provide stability for its partners.”

Jan Willem Kaasschieter, Artone

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.”

Mark Supperstone, Partner at Evelyn Partners and joint administrator to PMG, said: “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.”

 “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.”

Gee Davy, AIM

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.”

“Our members, particularly our 270 indie store members, wish them all the best in their new incarnation.”

Kim Bayley, ERA

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.”Music Business Worldwide