Entertainment One said it had entered into a definitive agreement to sell the company to US toymaker Hasbro for £3.3bn in cash.
Under the terms of the agreement, eOne shareholders would receive £5.60 in cash for each common share of eOne, representing a 31% premium to eOne's 30-day volume weighted average price as of August 22, 2019.
The acquisition of eOne would advance Hasbro's position as a play and entertainment company, adding global preschool brands with 'proven success and strong financial returns across platforms to Hasbro's robust portfolio,' the company said.
Hasbro said it expected to realize in-sourcing and other global annual run rate synergies of approximately US$130m by 2022, driven by integration benefits, substantial savings from moving a significant portion of eOne's toy business in-house and enhancing the profitability of eOne's licensing and merchandising activities.
The addition of eOne to Hasbro was expected to be boost earnings per share in the first year following the transaction, and deliver mid- to high-teens accretion to adjusted earnings per share in the third full year following the closing of the transaction as synergies are achieved, the company added.