eOne acquires reality television production company, Renegade 83
Entertainment One Ltd. today announces that it has acquired a 65% controlling stake in Renegade Entertainment, LLC ("Renegade 83"), a reality television production company, from the Renegade 83 Sellers. The acquisition further enhances eOne's reality television production capabilities, in line with the Group's strategy.
Based in Los Angeles, Renegade 83 was founded in 1994 by David Garfinkle and Jay Renfroe, and has gone on to become a fast-growing and successful unscripted television production company delivering multiple hit shows including Naked & Afraid, Naked & Afraid XL, Fit to Fat, 4400, The Kennedy Detail andBlind Date.
eOne has acquired a 65% controlling stake in Renegade 83 for US$23.0 million, subject to an adjusting payment based upon the adjusted EBITDA performance of Renegade 83 to 31 December 2016. Additionally, put and call options have been agreed, which will enable eOne to acquire the remaining 35% stake after five years. Renegade 83's results will be fully consolidated in eOne's financial statements. The transaction is expected to be earnings enhancing in its first year.
In the year ended 31 December 2015, Renegade 83 reported unaudited revenue of US$35.1 million and unaudited net income before taxes of US$2.9 million. Adjusted EBITDA amounted to US$5.2 million for 2015 (2014: US$3.0 million). As at 31 December 2015, Renegade 83 had unaudited gross assets of US$10.4 million.
David Garfinkle and Jay Renfroe will continue to lead Renegade 83 and, as part of the transaction have entered into new, long term employment contracts. In addition, eOne has also entered into a distribution agreement with Renegade 83, which will provide the Group with access to high quality, non-scripted programming for exploitation globally.
The Renegade 83 Sellers are comprised of: David Garfinkle, Jay Renfroe and Renegade Entertainment Holdings, Inc.
Darren Throop, President and Chief Executive Officer of Entertainment One said:
"We are delighted to welcome the Renegade team to eOne. Under David's and Jay's leadership, Renegade has rapidly developed a reputation for creating exceptional programming, with strong domestic and international audience appeal. The acquisition complements our expanding unscripted slate, and we are excited to see the business continue its development as part of the eOne Group."