U.S. toy maker Hasbro will buy Entertainment One for about $4 billion (3.27 billion pounds) in cash, adding the independent studio with preschool brands such as Peppa Pig and PJ Masks, the companies said on Thursday.
The deal provides the Nerf and Power Rangers toymaker with new exposure. It has been tying up with movie studios such as Paramount Pictures and Walt Disney to boost sales of toys linked to big movie franchises.
“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,” Hasbro’s Chief Executive Officer Brian Goldner said.
Hasbro will pay 5.60 pounds per share and will finance the deal with debt and $1.0 billion to $1.25 billion in cash from equity financing, the companies said.
Hasbro said it sees annual run rate synergies of about $130 million by 2022, helped by savings from a portion of eOne’s toy business in-house and improving the profitability of its licensing and merchandising activities.
(1 British pound = $1.2249)
