Sanctuary snaps up MWE for £6.6m

SANCTUARY Group is to buy Texas-based Music World Entertainment for £6.6m and establish an Urban and Gospel division under MWE's founder Mathew Knowles - father and manager of singer Beyonc.

The deal is to be funded through a mix of cash and stock. Sanctuary, which manages Iron Maiden among others, plans to use Knowles' expertise to develop a joint-venture record label with BMG to develop Urban and Gospel.

'I am thrilled to welcome Mathew and his artists to Sanctuary,' executive chairman Andy Taylor said. 'The quality of the artists adds considerable value to our roster.'

Knowles, 52, a former Xerox salesman, turned to full- time management when Beyoncé told him she wanted to sing. He set up Destiny's Child in 1995 which has sold more than 33m albums and singles worldwide so far.

MWE also manages Beyonce's sister, Solange, Kelly Rowland and Michelle Williams. Knowles will continue to manage after the acquisition.