UNIVERSAL'S VENUES TO BE TURNING BLUES.

Byline: Dave McNary Staff Writer

Entertainment conglomerate Seagram Co. agreed Monday to sell its 20-site Universal Concerts business to House of Blues for more than $190 million.

The deal moves House of Blues into national prominence as a concert promoter. The first club opened in Cambridge in late 1992, followed by 1994 openings in New Orleans and the flagship West Hollywood site on Sunset Boulevard.

House of Blues operates seven nightclubs with capacities of up to 2,000 while many of the Universal venues are significantly larger.

``We've created a powerhouse of a company through this acquisition,'' proclaimed Grege Trojan, president of House of Blues.

The deal, which will close in September, calls for Seagram to retain ownership of the flagship Universal Amphitheater while House of Blues operates the venue as part of a long-term lease. Universal Concerts owns, operates or exclusively books venues in Atlanta; Austin, Texas; Cleveland; Denver; Las Vegas; Portland, Ore.; San Diego; Seattle; Toronto; and Vancouver, British Columbia. It also promotes nonsymphony events at the Hollywood Bowl.

Seagram spokeswoman Anita Larsen said Universal Concerts is profitable, but its sale is part of Seagram's strategy, announced in mid-December, to unload $1 billion in noncore assets to cut debt following its $10.4 billion buyout of PolyGram NV. Seagram has since sold PolyGram's film libraries for $400 million and its Mumm and Perrier-Jouret sparking wines business for $310 million.

Wall Street has endorsed Seagram's strategy of focusing on its recorded music business and its stock is up 40 percent from mid-December. The issue rose 12.5 cents to $51.375 Monday.

Jay Marciano, president of Universal Concerts, and his management team will stay on to run the business. The deal also gives Seagram the option to buy up to 1 percent of privately owned House of Blues and provides for GetMusic.com, operated by Universal and BMG, to become exclusive Internet commerce provider for House of Blues.

The deal comes in the wake of extensive consolidation in the concert business. New York-based SFX Entertainment Corp., which has 82 venues, has been buying up smaller rivals, including longtime Los Angeles promoter Avalon Entertainment. Trojan said the deal will enable House of Blues, which also runs a record label and retail operation, to become a one-stop shop for artists.

``HOB is the only live entertainment company that can offer the artist exposure from the small club level through to an Amphitheater, partnered with live digital broadcasts over the Internet,'' he added.