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ITV PLC on Tuesday said it has agreed to buy a majority stake in Plimsoll Productions Ltd for £103.5 million to further its strategy of expanding its international content business.
The London-based broadcaster said it has bought a majority interest in Plimsoll, a 79.5% stake, from private equity firm LDC (Managers) Ltd, Plimsoll founder Grant Mansfield, and other shareholders. LDC, meaning Lloyds Development Capital, is part of lender Lloyds Banking Group PLC.
The remaining 20.5% will continue to be held by Mansfield and other members of the management team and strategic investors of the Bristol-based company.
The purchase price of around £103.5 million in cash values all of Plimsoll at an enterprise value of £131 million.
ITV said it has the option to buy the remaining 20.5% of Plimsoll. The price for this will depend on Plimsoll's performance through to December 31, 2027. The price is capped at £79.5 million and is payable from 2028 onwards, ITV said.
‘Plimsoll Productions' has a strong network with all of the global streamers, and this acquisition will strengthen and deepen ITV Studios' relationships with the streamers,’ the broadcaster said, noting Plimsoll has made natural history shows for platforms such as Apple+, Netflix and Disney, as well as for ITV itself.
Further, ITV said that with Plimsoll being watched, and sold, in nearly 200 countries, the acquisition marks a further ‘milestone’ in its strategy of expanding its international content business.
Plimsoll reported earnings before income, tax, depreciation and amortisation of £10.0 million in the 12 months to August 31 last year. Under ITV's ownership, Plimsoll will report on a calendar year; on this basis ITV forecast Plimsoll to deliver Ebitda of around £5.5 million in the second half of 2022.
The transaction will be earnings accretive from day one, the broadcaster added.
ITV Chief Executive Carolyn McCall said: ‘Growing ITV Studios with an exciting pipeline of premium programmes is core to our strategy as we further diversify the business by genre, by geography, by customer and grow ahead of the market.
‘Through Plimsoll Productions, as a Studio, we can continue to capitalise on the growing demand for natural history and factual programming and I am really pleased to welcome Grant and the team.’
Shares in ITV were up 1.4% to 68.30 pence each in London on Tuesday morning.
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