Business
DHX Media to acquire Family Channel and three other children's channels from Bell Media
Transaction expected to be materially accretive, provide strong and stable cash flow, r...
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[{"type":"text","content":"\n\n\n\n\n\nTransaction expected to be materially accretive, provide strong and\n stable cash flow, revenue diversification \n\n\nHALIFAX, Nov. 28, 2013 /CNW/ - DHX Media Ltd. (\"DHX\" or the \"Company\")\n (TSX: DHX) has entered into a definitive agreement to acquire Family,\n the most-viewed children's channel in Canada, as well as Disney XD,\n Disney Junior (English-language channel) and Disney Junior\n (French-language channel) (together the \"Family Channel Business\") from\n Bell Media for approximately $170 million in cash, subject to certain\n customary post-closing adjustments. The purchase price is expected to\n be financed with an expanded underwritten credit facility and with cash\n on hand. The transaction is expected to close in 2014 pending approval by the\n Competition Bureau and the Canadian Radio-television and\n Telecommunications Commission (\"CRTC\") and satisfaction of other\n customary closing conditions.\n\n\n\"The acquisition of these high-quality Canadian channels represents an\n exciting new addition to DHX, one that complements and enhances all\n areas of our business and positions us for our next stage of growth\"\n said Michael Donovan, CEO of DHX Media.\n\n\nFamily, the number one channel across all kids audiences was launched in\n 1988 and has approximately 5.7 million subscribers and an English\n market share of 29.6% for viewers 2 to 17 (based on Broadcast Bureau of\n Measurement data for broadcast year 2011/2012). Over the trailing 12\n months ended August 2013, these channels generated revenue of\n approximately $81 million and Direct EBITDA (before corporate\n allocations) of approximately $27 million (unaudited). Over the past\n three years, revenue has increased at a compounded rate of\n approximately 7%.\n\n\n\"The acquisition of these well positioned properties is expected to be\n materially accretive.\" added Dana Landry, CFO of DHX Media. \"It will\n greatly expand the scale of our business, with revenue increasing by\n more than 70% and EBITDA by more than 90% for the last 12 months on a\n pro-forma basis.\"\n\n\nConcurrent with the execution of the definitive agreement, DHX has\n entered into a commitment agreement with RBC Capital Markets to provide\n a fully underwritten senior debt financing. The enlarged financing\n package will consist of a $210 million five-year term loan facili...