Deal adds preschool powerhouse Peppa Pig to portfolio, plus PJ Masks, Ricky Zoom and additional brands in development.
Hasbro is to acquire Entertainment One, adding a raft of hit preschool brands to its portfolio, as well as substantially expanding its storytelling capabilities in TV, film and other mediums.
The all-cash deal – valued at approximately £3.3 billion – sees preschool powerhouse Peppa Pig join the Hasbro portfolio, along with PJ Masks and a slate of additional brands in development including the newly introduced Ricky Zoom.
It also means that Hasbro has dramatically enhanced its storytelling capabilities and franchise economics in TV, film and other mediums.
According to the official announcement, top eOne executives have agreed to join the Hasbro team, although no further details were given.
“The acquisition of eOne adds beloved story-led global family brands that deliver strong operating returns to Hasbro’s portfolio and provides a pipeline of new brand creation driven by family-oriented storytelling, which will now include Hasbro’s IP,” said Brian Goldner, chairman and chief executive officer of Hasbro.
“In addition, Hasbro will leverage eOne’s immersive entertainment capabilities to bring our portfolio of brands that have appeal to gamers, fans and families to all screens globally and realize full franchise economics across our blueprint strategy for shareholders. We are excited to welcome eOne’s talented employees from around the world into the Hasbro family.”
Darren Throop, ceo of eOne, continued: “Hasbro’s portfolio of integrated toy, game and consumer products, will further fuel the tremendous success we’ve achieved at eOne. “There’s a strong cultural fit between our two companies; eOne’s stated mission is to unlock the power and value of creativity which aligns with Hasbro’s corporate objectives.
“eOne teams will continue to do what they do best, bolstered by the access to Hasbro’s extensive portfolio of richly creative IP and merchandising strength. In addition, the resulting expanded Hasbro presence in Canada through eOne’s deep roots will bring world class talent and production capabilities to Hasbro. Along with our leadership team, I look forward to working with Hasbro on our joint growth and success for many years to come.”
The official statement says that Hasbro expects to realise ‘in-sourcing and other global annual run rate synergies’ of approximately US$130 million by 2022.
This will be driven by integration benefits, substantial savings from moving eOne’s toy business in-house and enhancing the profitability of eOne’s licensing and merchandising activities.
eOne’s Canadian TV and film operations will continue as a distinct Canadian-controlled business within the combined business.