Entertainment One Ltd (ETO.L) announced Monday that it agreed to acquire the Phase 4 Films group of companies , independent film and television distributor based across Canada and the United States, from the Phase 4 Sellers.
Phase 4 specialises in the sales, marketing, licensing and distribution of feature films, television and special interest content across all media in the North American market.
The acquisition is for a total consideration of C$27 million, satisfied by the issue of 1.41 million common shares in Entertainment One Ltd. and approximately C$19.3 million in cash.
In the year to 31 March 2014, Phase 4 generated unaudited revenue of C$51.7 million and unaudited earnings before income taxes of C$4.1 million. As at 31 March 2014, Phase 4 had unaudited gross assets of C$37.1 million.
Phase 4 is led by Berry Meyerowitz (President and CEO) and all of the Phase 4 team will remain with the business. Following completion, Berry will be appointed President of Entertainment One's Film businesses in the United States.
Following completion of the acquisition, application will be made for the admission to trading of the Consideration Shares, which will rank paripassu in all respects with the existing common shares. Completion is expected to take place on or around 3 June 2014.
Phase 4 comprises: SMCAD Holdings Inc., SMUSD Holdings Inc., SydygirlCAN Holdings Inc., SydygirlUSA Holdings Inc., Phase 4 Films Inc., Phase 4 Canada Holdings Inc. and 310 Canada Holdings Inc.
The Phase 4 Sellers comprise: Berne Meyerowitz, Jomar Family Trust, Sean Monson, Monson Family Trust, David Scott Richardson, Richardson Family Trust and Jennifer Strasberg.
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