DHX Media to acquire Cookie Jar Entertainment

New company becomes the largest kid's entertaiment entity.

Jennifer Coxby Jennifer Cox

DHX Media Ltd. recently announced plans to enter into an agreement to acquire the business of Cookie Jar Entertainment (“Cookie Jar”) to create Canada’s largest children’s entertainment company.

Together they will run the world’s most extensive independent library of children’s entertainment, including more than 8,550 half-hour episodes. The deal stipulates that the enterprise value for Cookie Jar, which is $111 million, will be paid through a combination of approximately 36 million DHX shares, $5 million in cash, and the assumption of $66 million of debt.

“The acquisition of Cookie Jar is a transformational event for DHX that will significantly enhance our scale and our growth opportunities,” said Michael Donovan, Chief Executive Officer of DHX, in an official press release. “Through this combination, we will strengthen our portfolio of brands, global reach, management depth, and our position in the rapidly emerging digital distribution channels to become the market leader.”

Cookie Jar is known for taking the helm of such animates hits as "Caillou,” "George of the Jungle," and “Inspector Gadget." DHX Media is equally well-known for such popular series as "That’s So Weird," "How to be Indie," and "Grandpa in My Pocket," and has offices in Toronto, Halifax, Vancouver, and Los Angeles.

“We believe this is an excellent strategic combination with great potential to create long-term value,” said John Loh, Partner at Birch Hill, who manage the company's funds. “We are excited to become a significant shareholder in the combined business, and look forward to working with the DHX team to grow the company.”

Photo: DHX Media Ltd.

Resources:

http://www.dhxmedia.com/press-room/305-dhx-media-to-acquire-cookie-jar-entertainment-creating-the-worlds-largest-independent-library-of-childrens-entertainment-content.html

http://www.edmontonjournal.com/business/Media+acquire+Cookie+creating+Canada+largest+kids+entertainment/7116315/story.html

http://business.financialpost.com/2012/08/20/dhx-media-to-acquire-cookie-jar-creating-canadas-largest-kids-entertainment-co/

http://thechronicleherald.ca/business/128311-dhx-media-acquiring-cookie-jar-entertainment-for-111-million