Entertainment One to acquire Alliance Films
The deal, which was first revealed as on-going negotiations last May during the Cannes Film Festival, will see eOne bolster its Canadian and U.K. operations and get new business in Spain.
Entertainment One has unveiled its long-awaited deal to acquire rival Alliance Films, and its Canadian, U.K. and Spanish distribution assets, from Goldman Sachs Capital Partners and Investissement Québec, as part of a deal potentially worth $225 million.
The deal, first revealed as on-going negotiations between eOne and Alliance Films last May during the Cannes Film Festival, will see eOne bolster its Canadian and U.K. operations and get a new business in Spain, where Alliance Films operates Aurum Producciones.
eOne also gets new output agreements in Canada with The Weinstein Company, Focus Features and Relativity Media, among others.
“The combination of Entertainment One and Alliance Films will create the leading global independent film distribution business which alongside our television and family divisions will deliver a strong strategic platform for long term growth,” eOne president and CEO Darren Throop said Friday in a statement.
“As a result of the acquisition, eOne will be a more competitive business in each of the geographic markets that we serve, allowing us to act as a more valuable partner for content producers and expanding the quality and depth of the content that we offer to our customers”, he added.
“eOne and Alliance Films share similar values. We both have a strong commitment to supporting film, culture and talent in Canada and in each of our territories. We also have passion for this business. Joining the eOne family will provide our dedicated teams and partners more opportunities to work with great films and film makers from around the globe,” Victor Loewy, chairman and CEO of Alliance Films, added in his own statement.
The deal comes as eOne earlier this year stepped up its U.S. film distribution operation as part of a global push.
eOne is financing the acquisition in part through a share issue, and the deal is contingent on Alliance Films achieving box office targets for its current release slate.