Barclays and NatWest will initially provide Cinesite with up to $52M for general funding and revolving credit facilities. The indie group has a further $20M in future flexible facilities to deal with potential acquisitions or expansion, and in parallel, Gryphion Capital Investments has taken a minority equity position in the company. Additional terms were not disclosed.
The company said the plan is for further growth through “new partnerships and collaborations with leading studios and filmmakers” and “to continue to win market share”. Cinesite Group CEO, Antony Hunt, and the senior team will continue to lead the business from London.
Headquartered in London, the Cinesite Group also operates facilities in Berlin, Montreal, Munich & Vancouver. Recent projects include MGM’s The Addams Family, Paramount’s Rocketman, Marvel Studios’ Avengers: Endgame, Captain Marvel & Spider-Man: Far From Home. TV includes Game of Thrones and Netflix series The Witcher.
According to Cinesite, the company has increased gross revenue by tenfold since 2014 off the back of content proliferation in the market thanks to the likes of Netflix, Disney+, Apple and Amazon.
Commenting on the investment, he said, “Securing this funding in the current uncertain climate is testament to the quality of our business and the position we have in the industry. It will enable Cinesite to move to the next level, benefitting our staff, customers and shareholders.”
Commenting on the investment, David Munoz, Director of Technology, Media and Telecoms at NatWest Corporate Banking, explained, “We are delighted to be supporting Cinesite in their next phase of growth. Our position as a leading banking partner to the creative industries makes us the natural home for Cinesite. The managements vision for the future represents an exciting opportunity for all stakeholders”
Barclays has been the core banker at Cinesite since 2013. Richard Green, Relationship Director for Technology and Media, said, “We have a strong and longstanding relationship with Cinesite, so for Barclays to support them as they continue to establish themselves as a global player in a growing marketplace is important. It also underlines our ongoing commitment to this exciting sector and to working with clients who continue to innovate and grow in this arena.”
Hans Oerlemans, managing director of Gryphion, added, “Seeing the achievements to date of the Cinesite business made it an easy decision for us to invest. The market served by Cinesite continues to present exciting growth opportunities as we foresee a strong increase in demand in the coming years. Cinesite is one of few leading providers that can consistently deliver the top quality that is needed in this market.”