stake in Lacewood

Paragon Entertainment has bought 50% of Ottawa-based animation house Lacewood Productions for $3.2 million, with $500,000 to be paid on closing and the balance to be paid in cash or shares over a five-year period, at Paragon’s option.

In the past, Paragon International has handled foreign and domestic distribution of some Lacewood product. Under the agreement, Paragon International will handle distribution of all available Lacewood product in all media worldwide. That includes most of a 12-project production slate for Lacewood in 1995, estimated at a hefty $50 million, up from $15 million in ’94.

Lacewood president Sheldon Wiseman attributes the boom to a chunk of production that is ready to roll in the coming year. ‘My expectation is that every three to four weeks, we will be going into production on something new, whether it’s series or specials,’ says Wiseman.

Included in the lineup are two Teddy Bear specials for the CTV Television Network and Disney, and 26 episodes of both Katie and Orbie and Matthew and the Midnight Adventures for Family Channel.

The input from Paragon allows Lacewood room to acquire, develop and finance projects like never before, says Wiseman. ‘We have never been able to spend a lot of money on development. We will have a number of properties by 1997, and a lot of the properties that will go into production (then) we will own.’

The Lacewood purchase is part of Paragon’s overall strategy of growth through acquisition and expansion into family entertainment, says Paragon chairman Jon Slan.

The deal closes April 1, and will contribute to Paragon’s 1996 fiscal year. Paragon has the option to buy additional shares at a later date.