HALIFAX – DHX Media is selling almost half of its stake in the Peanuts brand to Sony Music Entertainment (Japan) for $237 million cash in an effort to help cut its debt load.
The “strategic partnership” will see SMEJ will indirectly purchase 49% of DHX Media’s 80% interest in Peanuts, which the Halifax-based company acquired almost exactly a year ago. At the conclusion of the transaction, expected to be June 30, DHX Media will own 41% of Peanuts, SMEJ will own 39%, and the members of the family of Charles M. Schulz will continue to own 20%.
DHX Media and SMEJ have also agreed to extend the duration of the current Licensing and Syndication Agency agreement with SMEJ’s consumer products division, Sony Creative Products, in Japan. SCP has represented Peanuts since 2010, and is currently spearheading multiple licensing programs celebrating the 50th anniversary of Peanuts’ launch in that country.
“We are honoured to deepen our relationship with Sony Music Entertainment (Japan) as we continue our expansion of Peanuts globally,” said DHX Media executive chair and CEO Michael Donovan, in the news release. “Sony Music Entertainment (Japan) has incredible expertise in rights management across the entertainment and consumer products industries, having successfully grown the Peanuts business in Japan over 200% since they became our agent in 2010. This transaction will allow DHX Media to de-lever our balance sheet as we team up with an ideal partner to help us reach our worldwide growth targets for Peanuts in the coming years.”
The completion of the transaction is subject to customary closing conditions, required regulatory approvals, applicable third party consents and the execution of certain ancillary agreements.
