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Peppa Pig production studio sold to US toymaker Hasbro for €3.6 billion

The company said it was the acquisition of the show was a strategic growth opportunity.

US TOYMAKER HASBRO has announced that it will acquire studio Entertainment One, which owns the popular cartoon series Peppa Pig, for approximately $4 billion (€3.6 billion).

The all-cash transaction will see Entertainment One shareholders receive £5.60 (€6.18) per share, according to a statement from Hasbro.

In addition to Peppa Pig, the popular character with a British accent who loves jumping in muddy puddles, the purchase includes the successful children’s cartoon PJ Masks, about a trio of young friends who become superheroes at night.

“The acquisition of highly profitable and merchandisable preschool brands is a strategic growth opportunity for Hasbro,” the company said.

It added that Peppa Pig has extended itself to new profit streams that continue its success.

The company also said that the growth outlook of PJ Masks ”is supported by new formats, its current rollout in China, the launch of new seasons in multiple regions, a live touring event and new toy lines”.

Hasbro is additionally banking on the success of the launch of yet another Entertainment One character, Ricky Zoom, a little red rescue bike, which it calls a “unique storyline with highly merchandisable content”.

Hasbro plans for the acquisition to save it $130 million (€117 million) through in-sourcing and other synergies by the year 2022.

Three quarters of the acquisition will be carried out with the proceeds of debt financing thanks to a loan of just under a year from Bank of America Merrill Lynch.

Approximately $1-$1.25 billion (€900 million- €1.13 billion) will be financed in cash.

Hasbro said it is committed to doing everything within its power to maintain an investment grade rating.

- © AFP 2019

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