Hasbro to buy Entertainment One for £3.3bn

Writer,

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.


Related content

The small cap fund backing profitable, growing companies

Author: 

Smaller companies in the UK have been an unloved asset class since the 2016 Brexit vote, yet sentiment has recently started to improve. One savvy...

Thu, 05/12/2019 - 00:00


How I invest: the switch from day trading to long-term investing

‘I’m a nervous investor who had dreams of beating the market,’ says John, a 40-year-old doctor from Bristol.

Having first become interested in investing five years...

Thu, 21/11/2019 - 00:00


Jet2 owner takes off on Thomas Cook collapse and did Entertainment One bid come just in time?

“The FTSE 100 is weighed down by strength in sterling as optimism builds that Boris Johnson may, after all, secure a Brexit deal,” says AJ...

Fri, 11/10/2019 - 10:13


Entertainment One losses widen amid weakness in film, TV unit

Media production company Entertainment One reported wider first-quarter losses owing to weakness at its film, television and music division.

Pre-tax losses widened to £43.9m in...

Fri, 11/10/2019 - 07:44


Mark Slater: the fund manager who keeps on delivering

If you chart Mark Slater’s run as a fund manager back to the start of 2000, you will see a significant outperformance versus his peer...

Thu, 03/10/2019 - 00:00