France’s Banijay Group enters into a deal to buy Endemol Shine Group

Banijay Group, the French production and distribution giant has entered into a definitive agreement to acquire 100% of the equity of Endemol Shine Group (ESG), co-owned by The Walt Disney Company, with funds managed by affiliates of Apollo Global Management, Inc.

According to media reports, the acquisition will be financed through a capital increase of Banijay Group and committed debt financing, which includes a committed full refinancing of Banijay and Endemol Shine’s existing financial debt, supported by Deutsche Bank, Natixis and Société Générale. Postclosing, the combined group will be held by LDH (67.1%) and Vivendi (32.9%).

LDH is a holding company controlled by Financière LOV (52%), Stéphane Courbit’s investment arm. LDH along with other shareholders, De Agostini, the Italian Group with 36% of the capital, and Fimalac, the investment arm of Marc Ladreit de Lacharrière  will own 12% of the capital through a reserved capital increase dedicated to the financing of the Endemol Shine acquisition. 

Besides direct investment in LDH, Fimalac will continue to reinforce its long-term partnership with Financière LOV by increasing its stake in Financière LOV from 5.75% to 8.4%.

According to media reports, representatives from Banijay and ESG have met last week, before the deal was formally announced. While financial details of the deal were not disclosed, according to sources it could be around $2.2billion.

This acquisition while subject to customary closing conditions, will include regulatory clearances and consultation with the relevant employee representative bodies. It will encompass Endemol Shine’s 120 production labels with an estimated 66,000 hours of scripted and non-scripted programming together with over 4,300 registered formats.

Acquisition of Endemol Group’s assets will position Banijay Group at the forefront of content production and distribution, to become a premier house for the industry’s leading on-and off-screen talent. 

Post acquisition, Banijay Group will own almost 200 production companies in 23 territories and the rights for close to 100,000 hours of content of the world’s most sought-after TV shows and series. This acquisition will expand Banijay Group’s footprint and consolidate its position as a leading powerhouse for talent and intellectual property. Total pro-forma revenue of the combined group is expected to be approximately €3 billion for the year ending December 31, 2019.

The deal is expected to boost Banijay Group’s reputation and credibility in the industry as a go-to provider of high-quality unscripted IP.  The combined catalogue will include some of the world’s best known brands and formats such as Black Mirror, Versailles, The Millennium Trilogy, Peaky Blinders, Big Brother, MasterChef, Survivor, Temptation Island, Wife Swap and The Island. 

Marco Bassetti, Chief Executive Officer at Banijay, was quoted by a media report saying: “Endemol Shine brings an incredible array of industry-leading talent, globally-renowned brands and high-quality creative content. Combining the resources of these two companies will instantly strengthen our position in the global market, and our capabilities across genres will further define us as a go-to provider of first class IP worldwide. Welcoming the Endemol Shine brands and talents to our existing business will signal enhanced opportunities in the marketplace, and we are all excited by what the future holds for the combined entity.”

Sophie Turner Laing, Endemol Shine Group Chief Executive Officer, added: “At Endemol Shine, we have continually inspired and entertained audiences around the world, a testament to every single person across the Group. This deal takes us into a whole new and exciting chapter and into a new enhanced global content house with many opportunities ahead.”

With a significantly broader brand portfolio, and larger creative platform, the combined group will be in an even stronger position to create, nurture and drive fresh IP for both linear broadcasters and new players.