A fter weeks of speculation, it’s now official — Lionsgate is set to acquire the film and television assets of Entertainment One (eOne) from toy giant Hasbro, as well as its interest in the Canadian operations.

The deal comes in at approximately US$500 million (roughly C$667.6 million), with US$375 million in cash, subject to additional purchase price adjustments, and the assumption of production financing loans. Subject to customary closing conditions, the deal is expected to close by the end of this year.

The sale has been approved by Entertainment One Canada Limited’s board of directors, according to a news release from Hasbro, which also stated that proceeds of the sale will be used to “retire a minimum of US$400 million of floating rate debt by the end of the year, and for other general corporate purposes.”

Lionsgate CEO Jon Feltheimer said in a statement that the deal will allow the studio to “expand our presence in Canada and the U.K.” and scale operations in the regions. The company inked a co-development deal with Bell Media in 2022. It also serves as a distributor for Canadian series such as CBC’s Son of a Critch, holding U.S. and international rights, and Citytv’s Wong & Winchester with worldwide rights.

“The acquisition of eOne checks off all the boxes in areas that play to our core strengths,” said Feltheimer. “It will be immediately and highly accretive, adds a world-class library with thousands of properties, [and] strengthens our scripted and unscripted television business.”

Lionsgate has a long history in Canada. It was founded in Vancouver by Frank Giustra in 1997 and is named after the city’s Lions Gate bridge. The company sold off its Canadian film distribution unit Maple Pictures to Alliance Films in 2011, two years before eOne closed a deal to acquire Alliance. It is now headquartered in Santa Monica, Calif.

“This sale fully aligns with our strategy, and we are pleased to bring the process to a successful close,” said Hasbro CEO Chris Cocks in a statement. “Lionsgate’s management team is experienced in entertainment and adept at driving value, and we’re glad to have found such a good home for our eOne film and TV business.”

Hasbro, which acquired the Toronto-headquartered eOne for US$3.8 billion, announced its plan to sell the film and TV assets of the company in November 2022. The toy manufacturer will retain the IP gained in the eOne acquisition that supports its branded entertainment licensing strategy, such as the hit kids series Peppa Pig. Lionsgate, meanwhile, now acquires eOne’s catalogue of more than 6,500 film and TV titles, including Yellowjackets, The Rookie and unscripted content such as the Naked and Afraid franchise, produced by eOne-owned Renegade83.

In advance of the sale, Hasbro confirmed in June that it would be trimming 20% of eOne’s film and TV staff.

For Lionsgate, the deal was negotiated by COO Brian Goldsmith, EVP and general counsel Bruce Tobey, EVP corporate development Miles Delaney and VP corporate development Suzy Felfeli. Jefferies & Co., Ernst & Young and Sheppard Mullin advised Lionsgate on the transaction. For Hasbro, J.P. Morgan and Centerview Partners were lead financial advisors in the transaction. Osler, Hoskin & Harcourt LLP is acting as legal counsel for eOne Canada Limited, and Cravath, Swaine & Moore LLP, Mayer Brown International LLP and Stikeman Elliott LLP are legal counsel for Hasbro.

With files from Kelly Townsend

A version of this story originally appeared in Realscreen