PAWTUCKET, R.I., LONDON and TORONTO – Toy (G.I. Joe, Transformers) and game maker (Monopoly, Twister) Hasbro announced Thursday it will purchase Toronto based film and TV maker eOne in a $5.3 billion (US$4B, £3.3 billion) deal.
“The acquisition of eOne adds beloved story-led global family brands that deliver strong operating returns to Hasbro’s portfolio and provides a pipeline of new brand creation driven by family-oriented storytelling, which will now include Hasbro’s IP,” said Brian Goldner, company chairman and CEO, in the press release. “In addition, Hasbro will leverage eOne’s immersive entertainment capabilities to bring our portfolio of brands that have appeal to gamers, fans and families to all screens globally and realize full franchise economics across our blueprint strategy for shareholders. We are excited to welcome eOne’s talented employees from around the world into the Hasbro family.”
EOne’s board of directors has signed off on the deal. “I am very pleased by this exciting development, which is a testament to eOne management’s vision, leadership and solid execution. This transaction creates significant, immediate value for our shareholders as it recognizes the strength of our future-facing business model,” said Allan Leighton, eOne’s chairman.
“Hasbro’s portfolio of integrated toy, game and consumer products, will further fuel the tremendous success we’ve achieved at eOne,” added Darren Throop, eOne’s CEO. “There’s a strong cultural fit between our two companies; eOne’s stated mission is to unlock the power and value of creativity which aligns with Hasbro’s corporate objectives. eOne teams will continue to do what they do best, bolstered by the access to Hasbro’s extensive portfolio of richly creative IP and merchandising strength.
“In addition, the resulting expanded Hasbro presence in Canada through eOne’s deep roots will bring world class talent and production capabilities to Hasbro. Along with our leadership team, I look forward to working with Hasbro on our joint growth and success for many years to come.”
The acquisition is meant to advance Hasbro’s position as a leading global play and entertainment company, adding beloved, global preschool brands such as Peppa Pig, PJ Masks, while eOne will be the arm to expand Hasbro’s well known intellectual property into ever more electronic media – and build more brands like eOne’s upcoming Ricky Zoom.
“Live action and animation present multiple avenues to bring Hasbro’s franchises to life as OTT platforms and networks are increasingly interested in new, unexploited intellectual property while studios reclaim content for proprietary platforms,” reads the Hasbro press release.
Top eOne executives have agreed to join the Hasbro team, too.
“eOne’s Canadian presence is an important base for creative talent and best-in-class studio capabilities, significantly expanding Hasbro’s Canadian presence and positioning eOne for ongoing success in Canada, including in relation to its robust pipeline of television and film projects,” adds the release.
As well, according to the announcement, the composition of eOne’s Canadian operations under its new owner will ensure it will remain a Canadian-controlled producer. “The transaction is structured to ensure that eOne’s Canadian operations will continue to meet applicable Canadian control regulatory requirements in relation to television and film production companies, to the continued benefit of the Canadian television and film production industry,” reads the release.
The transaction is structured as a statutory plan of arrangement under the Canada Business Corporations Act and has been approved by the boards of directors of each of Hasbro and eOne. It’s subject to receipt of certain regulatory approvals, the approval by eOne shareholders and the Ontario Superior Court of Justice and other customary closing conditions. eOne is subject to customary non-solicitation provisions under the definitive agreement and a termination fee payable to Hasbro in certain circumstances. The transaction is expected to close during the fourth quarter of 2019.
