Independent international producer and distributor DHX Media Ltd., the parent company of DECODE Ent. and Halifax Film, has acquired all the outstanding shares in privately-owned children’s programming producer Studio B Prods. Based in Vancouver, Studio B boasts a library of more than 400 half-hours of content and is currently in production on seven shows, including Kid vs. Kat for YTV, Ricky Sprocket, Showbiz Boy! for Teletoon and Martha Speaks for WGBH in the United States.
Studio B operates a 24,000 square foot studio devoted digital and traditional animation, and has projected net income of approximately $1.4 million for the fiscal year ended Oct. 31. In addition to expanded production capabilities, DHX Media will benefit from several new broadcaster relationships and a greater supply of children’s programming from which it can generate future distribution revenues.
Studio B co-founders and co-CEOs Blair Peters and Chris Bartleman will continue to serve as co-presidents to operate Studio B as a wholly-owned production subsidiary of DHX Media under four year employment contracts. ‘We are very excited about this partnership,’ they comment. ‘The synergies with DHX Media and specifically their international distribution group will allow us to focus on increasing our proprietary titles which will lead to significant growth in worldwide distribution potential and earnings.”
Terms of the acquisition include an initial cash payment of $8 million against a total purchase price of 4.5 times the average of Studio B’s fiscal 2007 and the year ending Oct. 31, 2008 earnings before interest, taxes, depreciation and amortization of capital equipment up to a maximum amount of CAD $20 million. Any further potential consideration payable by DHX Media is subject to Studio B meeting certain financial performance benchmarks for Fiscal 2007 and Fiscal 2008 and would be paid 30% in cash and 70% in shares of DHX Media.
Other Studio B productions and co-productions include Being Ian, The Amazing Adrenalini Brothers!, Class of the Titans and the upcoming George of the Jungle, a co-production with Classic Media that is set to air on Cartoon Network in the U.S. Information on these and other Studio B shows can be found at www.studiobproductions.com.