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MUMBAI:
DHX Media has entered into a definitive agreement to acquire
the business of Cookie Jar Entertainment to create Canada's
largest children's entertainment company.
DHX
has acquired Cookie Jar at an enterprise value of $111 million,
to be paid through a combination of approximately 36 million
DHX shares, $5 million in cash, and the assumption of $66
million of debt.
The
combined company will own the world's most extensive independent
library of children's entertainment, including more than 8,550
half hour episodes.
"The
acquisition of Cookie Jar is a transformational event for
DHX that will significantly enhance our scale and our growth
opportunities," said Michael Donovan, Chief Executive
Officer of DHX. "Through this combination, we will strengthen
our portfolio of brands, global reach, management depth and
our position in the rapidly emerging digital distribution
channels to become the market leader."
"Today
is an exciting day for Canada's children's entertainment industry.
Cookie Jar joining forces with DHX results in a company that
is an independent global market leader in all aspects of children's
entertainment from distribution to production to licensing
and merchandising. There
is an insatiable appetite for kids' content in the new digital
streaming universe and we are very well positioned with our
extensive library of evergreen, popular and recognizable brands
to satisfy the market demand," said Cookie Jar's CEO
Michael Hirsh.
Following
the closing, Michael Donovan, current CEO of DHX, will continue
to serve as CEO. Michael Hirsh, current CEO of Cookie Jar,
will become Executive Chairman of DHX. Steven DeNure and Dana
Landry will continue in their current roles of President &
COO, and Chief Financial Officer, respectively. Cookie Jar's
current President & COO Toper Taylor will continue to
focus on digital distribution and business development. Aaron
Ames, CFO of Cookie Jar, will assume the role of Chief Integration
Officer reporting directly to the CEO.
Cookie
Jar has a significant content library and features some of
the world's most recognizable series including Caillou, Inspector
Gadget, and Johnny Test. The company controls Cookie Jar TV,
the weekend morning block on CBS. Cookie Jar has offices in
Toronto, Los Angeles and in addition, throughout Western Europe,
as part of its Copyright Promotions Licensing Group, a leading
licensor and merchandiser of third party brands and characters.
Cookie
Jar has experienced significant growth in digital distribution,
growing revenue from that channel to $8 million in the 12
months ending 31 May. Over the same 12-month period, Cookie
Jar had total revenue of $56.7 million and EBITDA of $12.6
million.
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