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Toymaker Hasbro Acquires Entertainment One Studio as part of a $ 4 billion cash transaction, bringing My Little Pony and Nerf under the same umbrella as "Peppa Pig" and "PJ Masks", while pursuing Hasbro's growth objectives in the infant and preschool categories.
Sources say the news has been a surprise to most Entertainment One people.
Senior executives from eOne will join the Hasbro team, said the companies in a joint statement. The independent studio highlighted its child-friendly rate, noting that it was transforming its business into "high-quality, talent-based content," including its "Clifford the Big Red Dog" and "Monster Problems."
Brian Goldner, CEO of Hasbro, highlighted the potential of eOne's intellectual power as a studio with Hasbro's intellectual property.
"With eOne's content creation capabilities … we can reach an audience on every screen," including cable and streaming, he said during the call.
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Noting that eOne is profitable and that half of its EBITDA comes from its family brand portfolio for the last time, Goldner calls it "Peppa Pig" and "PJ Masks", "extremely profitable and merchandisable".
Under the terms of the transaction, eOne shareholders will receive £ 5.60 per common share, a 31% premium on eOne's 30-year weighted average starting Thursday. Hasbro said the deal would be financed with the help of debt proceeds and $ 1 billion to $ 1.25 billion in cash from stock financing.
"The eOne acquisition adds global, beloved, history-inspired family brands, which generate strong operational efficiencies in Hasbro's portfolio and provide a portfolio of new brands based on storytelling." family-oriented, which will now include Hasbro's intellectual property, "said Goldner in a statement. "In addition, Hasbro will leverage eOne's immersive entertainment capabilities to bring our portfolio of brands that attract players, fans and families to every screen in the world and realize the franchise's economy across the globe." our strategy for shareholders. We are delighted to welcome talented eOne employees from around the world to the Hasbro family. "
The addition of eOne to Hasbro will increase adjusted earnings per share in the first year after the transaction, with the medium to high increase to adjusted earnings per share in the third full year following the closing of the transaction.
Entertainment Chairman of the Board, Allan Leighton, said he was "very excited about this exciting development," calling it a testimony to eOne's vision of leadership, leadership, and execution.
"Hasbro's portfolio of integrated products for toys, games and consumer products will fuel the tremendous success of eOne," said eOne CEO Darren Throop. "There is a strong cultural fit between our two companies. The declared mission of eOne is to unleash the power and value of creativity that matches Hasbro's goals. EOne teams will continue to do what they do best with access to Hasbro's rich portfolio of creative and merchandising products. In addition, Hasbro's increased presence in Canada, resulting from eOne's deep roots, will bring Hasbro world-class production capabilities and capabilities. With our management team, I look forward to working with Hasbro on our common growth and success for many years. "
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