ITV’s seemingly insatiable acquisitions appetite continues with the announcement that the company has bought Boom Supervisory Limited, the holding company of Brit TV production banner Twofour Group, from majority shareholder LDC, the private equity arm of Lloyds Banking Group. ITV will pay an initial cash consideration of $86 million for 75% of the group, with a put and call option for the remaining 25% that can be exercised at the end of 2017 and between the end of 2019 and 2021, with any further payment subject to minimum average EBITA thresholds.
Additionally, Twofour owns 51% of drama indie Mainstreet Pictures and has a put and call option to acquire the remaining 49% of its subsidiary Mainstreet that can be exercised between 2018 and 2023. The total maximum consideration for Twofour and the remaining 49% of Mainstreet is $440 million with contingent payments dependent on both businesses delivering exceptional profit growth to $94 million in aggregate over the payment period.
Companies owned by the umbrella group include Twofour, Indus Films and Boomerang, with credits including Educating…., The Jump, The Hotel Inspector and Animal Odd Couples. Twofour has offices in London, Cardiff, Plymouth, Los Angeles and New York. Last year the group produced over 1,200 hours of programs, through their various production companies. The company also owns Twofour Rights, and in-house distribution arm. Broadcast Magazine has twice named Twofour Indie of the Year in 2010 and 2014.
“Great creative talent, fantastic content and brilliant production expertise are central to ITV Studios’ strategy, so I’m delighted that the Twofour Group is joining our family of production companies as we continue to boost ITV Studios’ growth in the UK and internationally,” said Kevin Lygo, Managing Director ITV Studios.
“At ITV Studios our mission is to work with the best creative talent in Britain and our acquisition of Twofour is a brilliant illustration of that ambition,” added Julian Bellamy, Managing Director, ITV Studios UK. “They’re a creative group at the top of their game across factual, entertainment, drama and comedy and we’re delighted to welcome them into the ITVS family.”
ITV has been on an acquisitions tear of late, taking full control of Mammoth Screen earlier this month and closing a deal in March to acquire 100% of John De Mol’s Talpa in a deal worth an initial $530 million. In the past two years, the company has bought a string of U.S. and UK production companies, including Big Talk, The Garden and Leftfield Entertainment. One deal that appears to have fallen by the wayside, however, is the mooted purchase of the Weinstein Co’s TV division.