July 24, 2012 8:00 am EST New York, NY: Hollywood's Dreamworks Animation (Nasdaq: DWA) has significantly bolstered its library of children's entertainment with Monday's $155 million acquisition of Classic Media (PrivCo Private Company Ticker: CLASP) from Bommerang Media (PrivCo Private Company Ticker: BOOMP). The acquisition is a move to create a sustainable library of characters for future animated titles, reining in big names such as "Casper The Friendly Ghost", "Where's Waldo?", "Lassie", "The Lone Ranger", "George of the Jungle", "Rocky & Bullwinkle", "Frosty the Snowman", "Rudolph the Red-Nosed Reindeer" and "Santa Claus is Comin' to Town". Dreamworks and Classic Media were first introduced when Dreamworks was looking to acquire a license for Classic Media's "Mr. Peabody & Sherman". These discussions allowed Dreamworks to realize the extent of Classic Media's vast cartoon character portfolio, and subsequently submit its winning bid. Dreamworks is planning to immediately make use of its new acquisition by scheduling an animated feature of "Mr. Peabody & Sherman" for a December 2013 release.
- Dreamworks Animation has acquired Classic Media, a subsidiary of Boomerang Media , for $155 million in cash, implying 1.9x 2012 Revenue and 8.1x 2012 Net Income
- In 2008, GTCR's Private Equity Fund made a $200 million dollar investment in Boomerang Media, to support its strategy of acquiring iconic branded entertainment content assets
- In 2009, Boomerang Media bought the distressed assets of Entertainment Rights Plc (PrivCo Private Company Ticker: ENTEP) and Classic Media for £75 million through pre-packaged bankruptcy
| Date | Status | Stake Acquired | Deal Amount | Deal Type | Currency Used |
| July 2012 | Completed | 100% | $155,000,000 | Acquisition | Cash |
| Target | Buyer | Sellers |
|
New York, New York, United States
Industries: TV Networks, Books Advisor: Jefferies Advisor: Kirkland & Ellis LLP |
Glendale, California, United States
Stake Acquired: 100 % Advisor: Cravath, Swaine & Moore LLP Advisor: J.P. Morgan |
Chicago, Illinois, United States
New York, New York, United States
|
| Deal Amount | |
| Total Deal Amount | $155,000,000 |
| Deal Price Paid @ 100% | $155,000,000 |
| Cash Amount | $155,000,000 |
| Enterprise Value (EV) | $155,000,000 |
| Financials for Target: Classic Media, Inc. | Transaction Multiples | ||
| Total Assets | EV / A | ||
| Stockholder's Equity | EV / SE | ||
| Revenues 2012 | $82,200,000 | EV / R | 1.9x |
| Net Income (Loss) 2012 | $19,200,000 | EV / E | 8.1x |
| Cash Flow | EV / CF | ||
| EBITDA | EV / EBITDA | ||
| Operating Income (Loss) | EV / OI | ||
| Business Description for Target: Classic Media, Inc. | ||
|
Classic Media is a media company that has a portfolio of kids, family, and pop-culture entertainment brands. The company produces live-action and animated feature films, and TV series and specials, as well as offers home video distribution services. Classic Media’s portfolio of media content (450 movies and 6,100 episodes of TV shows) amounts to more than 3,600 hours of programming distributed to 170 territories worldwide. Several well-known brands from Classic Media includes Casper the Friendly Ghost, Where's Waldo?, Lassie, The Lone Ranger, George of the Jungle, Rocky & Bullwinkle, Frosty the Snowman, Rudolph the Red-Nosed Reindeer and Santa Claus is Comin' to Town. The company was founded in 2000 by Eric Ellenbogen and John Engelman. It is headquartered in New York City, with offices in the UK and a division, Big Idea Entertainment, in Nashville, TN. |
||
| Business Description for Seller: GTCR Golder Rauner, LLC | ||
|
GTCR Golder Rauner, LLC is a Chicago, Illinois-based private equity firm. Founded in 1980, GTCR Golder Rauner, LLC considers buyouts and acquisitions and restructurings and special situations. |
||
| Business Description for Seller: Boomerang Media, LLC | ||
|
Boomerang Media is a privately held company that engages in the acquisition of media content. Boomerang Media was founded in 2008, and has headquarters in New York, NY. |
| Termination Fees | |
| Has Ability to Solicit? | No |
| Has Termination Fee? | No |
| Target Balance Sheet | |
| Has Other Assumed Liabilities? | Yes |
| Deal Notes |
| Classic Media will operate under the DreamWorks Classics brand and co-Chief Executives Eric Ellenbogen and John Engelman will remain as co-heads. |
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