FFI Holdings PLC Acquires EPS-Cineworks Digital Studios
FFI Holdings PLC the world leader in the provision of completion contracts to the entertainment industry for films, television, mini-series and streaming product, announced today that on November 13, 2017 it completed the acquisition of EPS-Cineworks Digital Studios, a full service, digital, post-editing machine rental business, servicing numerous theatrical and television productions. The company, with which FFI signed a Letter of Intent in September 2017, will significantly enhance FFI's ancillary services business lines - a key growth market identified in FFI's business strategy at the time of its Initial Public Offering in June 2017.
With a strong management team and a significant presence in North America, EPS-Cineworks is at the forefront of post-production services and technology. The company holds particularly strong relationships in television and independent projects, which are seeing growth due to the increased content being produced by streaming companies that do not have traditional post-production capabilities.
EPS-Cineworks generated $9.4 million in revenues in FY 2016 and adjusted EBITDA of $2.7 million. The acquisition price was agreed as a multiple of 3.5x EBITDA (based on trailing twelve-month financials ending 31 October 2017) resulting in a total consideration of $9.54 million. FFI paid 87% cash at closing with the remainder to be paid in two equal instalments of $600,000 in late 2018 and early 2019. The current management of EPS-Cineworks will continue to oversee the operations and growth of the company going forward.
A number of strong synergies exist between EPS-Cineworks and FFI's existing editing and post-production rental business Pivotal Post, which FFI acquired in February 2017. Following the EPS-Cineworks acquisition, both companies will be able to utilise each other's resources and expertise to maximise profitability as FFI strengthens its position as a market leader in the provision of post-production services in North America.
Steven Ransohoff, CEO of FFI commented, "Today's transaction underscores FFI's commitment to expanding its ancillary business offerings, in line with the diversification strategy we set out at the time of our IPO. We look forward to working with EPS-Cineworks' talented management team to maximise the synergies between us as we build a market-leading position in post-production services. We continue to review further acquisitions in support of this ambition and look forward to making further announcements in due course."
Kevin Hyman, CEO of Pivotal Post, who will manage the combined operation of Pivotal Post and EPS-Cineworks, commented, "With this acquisition, we will be better able to service the needs of our customers as the demand for content continues to grow. I look forward to working with David Goodman and his team at EPS-Cineworks in order to provide critical services to the film making community."
Additional information on EPS-Cineworks can be found at www.epscineworks.com.
About FFI Holdings PLC
FFI Holdings PLC is the holding company of Film Finances Inc. (FFI), the world's leading provider of completion contracts to the entertainment industry, which offer assurance to the financiers of film, TV, mini-series and online media content that productions will be completed on time and on budget. These contracts serve to offload risks to production budgets and timelines for financiers, as well as for FFI through long-standing insurance relationships.
Since its founding in the 1950s, FFI has issued contracts on approximately 1,700 productions with gross budgets in excess of US$17 billion. These include many of the film industry's best known-titles, ranging from the first Bond movie (Dr. No, 1962) to The Hunger Games (2012) and Oscar winning films such as 12 Years a Slave (2013) and La-La Land (2016).
Over successive decades FFI has grown globally to become a trusted, iconic brand at the centre of the film industry. Headquartered in Los Angeles, USA, it has 11 offices globally, including in London, Stockholm, Toronto, New York, Cape Town, Cologne and Shanghai.