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Entertainment One gains full ownership of Sierra Pictures

The FTSE 250 entertainment studio said the purchase of the remaining stake in Sierra would enhance its capabilities in producing and acquiring premium films
Film camera crew
The acquisition will contribute to the firm’s plan to double in size by 2020

Entertainment One Ltd (eOne) (LON:ETO) has purchased the remaining stake in film production group Sierra Pictures, giving it full ownership.

The FTSE 250 entertainment studio said the purchase of the remaining stake in Sierra would enhance its capabilities in producing and acquiring premium films as well as increasing direct involvement and ownership of content.

READ: JPMorgan ups price target for Entertainment One as new theme parks drive brand recognition

eOne added that the wholly-owned international sales company, Sierra/Affinity, would be leveraged to sell eOne’s titles into territories where there is no direct distribution infrastructure.

Following the completion of the acquisition, eOne said it was seeking to admit and additional 1,231,768 shares to trading on the London Stock Exchange, with admission expected to take place on 4 July 2018.

The acquisition will contribute to the firm’s plan to double in size by 2020, as well as a “reshaping” of its film and TV divisions into a single, more streamlined structure, which is expected to generate cost savings of between £13-15mln per year.

In mid-morning trading Tuesday, eOne shares were up 1.4% at 361.6p.

--Adds share price--

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