The Canada Pension Plan Investment Board (CPPIB) has agreed to buy a minority stake in Entertainment One Ltd (eOne), a Toronto-based entertainment business that acquires, produces and distributes film and television content. CPPIB will pay £142.4 million ($289.9 million) for a 17.9 percent interest in the company. The seller in the deal, which is expected to close within 30 days, is Marwyn Investment Management, a British private equity firm that has backed eOne since 2007. CPPIB said it wants to partner with the company “to help it achieve its ambitious growth plans of doubling in size within the next five years.” Earlier this year, eOne bought a stake in The Mark Gordon Co.
Canada Pension Plan Investment Board to Invest GBP 142.4 Million in Entertainment One Ltd.
Investment represents approximately 18% interest
Toronto, Canada (September 16, 2015): Canada Pension Plan Investment Board (“CPPIB”) announced today that it has signed a commitment to acquire 52.9 million common shares of Entertainment One Ltd. (“eOne” or the “Company”) at a price of £2.69 per common share from Marwyn Value Investors LP. CPPIB’s total investment of £142.4 million will represent an approximate 17.9% ownership interest in the Company. The disposal is conditional upon CPPIB having received notice from the Australian Foreign Investment Review Board that there are no objections concerning its proposed acquisition of shares in eOne. Such notification, and the closing, is expected within 30 days.
Headquartered in Toronto, eOne is a leading international independent entertainment company that specializes in the acquisition, production and distribution of film and television content. Through its extensive global infrastructure, the Company distributes original and third-party content to markets around the world. With a portfolio of over 40,000 film and television titles, eOne is recognized for some of the world’s best-known entertainment brands, including The Walking Dead, Peppa Pig, and feature film franchises The Hunger Games, The Divergent Series and The Twilight Saga.
“We are pleased to have the opportunity to become a significant shareholder in eOne and to work with the company to help it achieve its ambitious growth plans of doubling in size within the next five years,” said Scott Lawrence, Managing Director & Head of Relationship Investments, CPPIB. “eOne’s management team has a proven track record of performance in the rapidly changing, dynamic entertainment industry and the company. With the proliferation of channels, the value of content is ever increasing across the globe and eOne is well-positioned to capitalize on both organic and acquisitive growth opportunities in its many lines of business.”
Through strategic acquisitions and top-tier creative partnerships, the Company has achieved significant growth since listing on the London Stock Exchange in 2007. In addition to its exclusive multi-year distribution agreement for all original scripted series from AMC Networks’ AMC and Sundance Channel, the Company recently strengthened its creative platform through a joint venture with The Mark Gordon Company, producers of television series Grey’s Anatomy and Ray Donovan as well as feature films Saving Private Ryan and Speed. The partnership brings together one of the world’s most successful television and film producers with eOne’s extensive international distribution network to deliver premium film and television content globally.
“This investment is well-aligned with our focus on providing strategic, long-term capital to leading public companies, like eOne, where we can participate in the future success of the company and help create greater value through an ongoing partnership,” said Mr. Lawrence.
Listed on the London Stock Exchange in 2007, eOne became a constituent of the FTSE 250 index in September 2013.
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2015, the CPP Fund totalled C$268.6 billion. For more information about CPPIB, please visit www.cppib.com.
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