BY Richard Summerfield
Hasbro Inc has announced a deal to acquire Entertainment One Ltd (eOne) in an all-cash transaction valued at $4bn.
Under the terms of the agreement, eOne shareholders will receive £5.60 in cash for each common share of eOne held, which represents a premium of 26.4 percent to eOne’s close of £4.43 on Thursday, the day before the deal was announced, and a 31 percent premium to the company’s 30-day volume weighted average price as of 22 August 2019. The deal is expected to close in the fourth quarter of 2019.
Hasbro will finance the deal with debt and $1bn to $1.25bn in cash from equity financing, the companies said. Hasbro expects to see annual run rate synergies of about $130m by 2022. The deal is the biggest merger in Hasbro’s history
“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, chairman and chief executive at Hasbro. “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 realise 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.”
“Hasbro’s portfolio of integrated toy, game and consumer products, will further fuel the tremendous success we’ve achieved at eOne,” said Darren Throop, chief executive at eOne. “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.”