RNS - Acquisition11 Apr 2011 08:16
here comes the first of those acquisitions....
11 April 2011
Date: 11 April 2011
On behalf of: Entertainment One Ltd.
Embargoed until: 0700hrs
Entertainment One Ltd.
Acquisition of Australian Film Distribution Group Hopscotch
-- First acquisition into Australian market
-- Enhances eOne's international film infrastructure
-- Expected to be earnings enhancing in year one
Entertainment One Ltd. ("eOne", the "Company", the "Group"), the international entertainment group, is pleased to announce that it has agreed to acquire the Hopscotch group of companies ("Hopscotch") for a total consideration of AUD$20 million (approximately GBP12.9 million), payable by the issue of 4,126,636 million common shares in Entertainment One Ltd. (the "Consideration Shares") and approximately GBP6.45 million in cash, subject to a number of closing conditions.
Founded in 2002, Hopscotch is an Australian film distribution group based in Sydney, focused on independent international titles alongside local Australian content.
During 2010 Hopscotch released 15 titles theatrically and it controls a library of more than 300 feature film and television titles. Over the past three years notable releases have included Secrets and Lies, Vicky Cristina Barcelona, The Wrestler, The Kids Are All Right and most recently Golden-Globe nominated Barney's Version. The release slate for 2011 includes Oscar nominated Incendies, Don't Be Afraid Of The Dark and Beginners (starring Ewan McGregor). The US box office hit Source Code (starring Jake Gyllenhaal) will be released into the Australian market on May 5th. Alongside feature films, Hopscotch also controls exclusive DVD distribution rights for television programming, including the hit UK shows The Inbetweeners, The Catherine Tate Show and Secret Diary of a Call Girl. Hopscotch's current management team, led by Troy Lum, Frank Cox and Sandie Don, will remain in place following completion.
In the year to June 2010, Hopscotch generated unaudited revenue of approximately GBP11.9 million and EBITDA (prepared consistently with eOne's accounting policies) of approximately GBP1.9 million. eOne expects the deal to be EPS enhancing in year one.
The acquisition of Hopscotch further builds eOne's international film distribution infrastructure, adding to its existing operations in Canada, the UK, Benelux and the US. Australia represents the last major English speaking film and television market outside of North America and the UK and eOne believes that the acquisition will enhance the Group's ability to access new film distribution opportunities, both within Australia and on a multi-territory basis. The acquisition will also enable eOne to have direct access into the Australian market for exploitation of the television titles produced by its own Television business.
Darren Throop, CEO of eOne, said:
"The acquisition of Hopscotch is another s
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