ITV PLC (LSE:ITV) has struck a deal to buy natural history programme provider Plimsoll Productions from private-equity firm LDC and other shareholders for £103.5mln, it said on Tuesday.
The deal values the Bafta, Emmy and Academy award-winning, Bristol-based producer at £131mln.
ITV said it expects the purchase of a majority stake in the unscripted factual programme producer will deepen its ties with television streaming networks, as it embarks on launching a new streaming service, ITV X, designed to rival Netflix.
The channel has struggled to innovate in the field of streaming quickly enough and this June dropped out of the FTSE 100 as part of the latest quarterly reshuffle.
Bristol-based documentary and factual production company Plimsoll sells content in nearly 200 countries and is behind series such as Animal on Netflix and Disney’s Hostile Planet. The company is also producing a new series, A Year on Planet Earth, which will be broadcast by ITV, Tencent, Fox Nation and Ard Group.
Plimsoll's roster of staff includes chief creative officer Dr Martha Holmes, who was involved in the production of the Blue Planet series with David Attenborough.
Plimsoll Productions was listed on The Sunday Times Fast Track 100 and International Track 200 this year and is expanding in the premium unscripted space, producing documentaries for multiple channels including the BBC and Channel 4.
ITV has agreed to pay £85.5mln to existing shareholders in the company including LDC, Plimsoll's chief executive Grant Mansfield, who retains the remaining stake, and other shareholders, as well as paying down the company's net debt. The deal is expected to close on 1 July.
The independent television channel has the option of buying the remaining 20.5% of shares from Plimsoll's CEO under a call and put arrangement.
The Bristol-based production company’s underlying earnings were £10mln for the year ending 31 August 2021 and it is forecast to generate £5.5mln in the first half of calendar year 2022.
Mansfield said: "The significant opportunities in the international premium unscripted market make this the perfect time for Plimsoll to join ITV Studios."