Acquisition

14 May 2007 13:16

Entertainment One Ltd14 May 2007 Entertainment One Ltd. Acquisition of Navarre Entertainment Media Inc Entertainment One Ltd. (the "Company") today announces that its subsidiary KochEntertainment LP has entered into a conditional agreement to acquire NavarreEntertainment Media Inc ("Navarre Entertainment"), a distributor of independentmusic labels in the United States, for a total consideration of US$6.5 million(£3.3 million). The acquisition will be funded by existing cash resources withinthe Company. The acquisition adds more than 70 new exclusive distribution agreements whichcurrently generate annual revenues of approximately US$50 million and EBITDA ofapproximately US$2 million. With this addition, KOCH Entertainment's marketshare is expected to increase from approximately 1.8% to approximately 2.7%. Darren Throop, Chief Executive of Entertainment One Ltd. commented: "Thisacquisition provides Koch with an excellent opportunity to leverage its existinginfrastructure and generate significant cost synergies while consolidating itsposition as the leading independent music distributor in the United States." Enquiries Finsbury +44 (0)20 7251 3801Don Hunter About Entertainment One Ltd (LSE: ETO) Admitted to trading on the AIM market of the London Stock Exchange on the 29thMarch 2007, Entertainment One's strategy is to build the leading internationalindependent entertainment content ownership and distribution business. The current business comprises: - Entertainment One, which is the largest wholesaler in Canada of DVDs, CDs and video games. The business has established relationships with the industry's largest producers developed over 25 years and it currently serves over 3,000 customers; - Koch Records, which is the largest independent record label in the US; and - Koch Entertainment Distribution, which is a leading distributor of home entertainment products to the US market. As well as distributing the content produced and licensed by Koch Records, it also distributes the products of morethan 50 independent audio and video labels on an exclusive basis in both physical and digital formats. This information is provided by RNS The company news service from the London Stock Exchange