The company bought Prospect Pictures, a producer of lifestyle entertainment programmes such as Daily and Saturday Cooks; September Holdings, a maker of popular factual entertainment such as Hollywood Lives; and West Park Pictures, a documentary specialist with a major contract with Stephen Fry.
These deals are part of the company’s strategy of moving further into production to create internal synergies and benefits for its in-house distributor.
This acquisition plan started in late 2005 with the takeovers of NBD Television and Box TV, which were followed in February 2006 by the addition of Done and Dusted.
The three recent deals were completed for £19.1 million, comprising more than £9.5 million in cash and loan notes and some £9.5 million in new ordinary shares. The cash element was funded from the proceeds of a placing and a convertible loan from certain institutional investors.
DCD chief executive Chris Hunt said: “We are delighted to have completed these deals, which are all expected to be earnings accretive; we anticipate that this will be enhanced as the newly acquired businesses’ growth as part of our group will be significant.”
The acquirer’s legal adviser was Tim Parker, a partner at Harbottle & Lewis LLP, who was assisted by senior associate Rhys Llewellyn. The team also included Lisa Pickering from the firm’s corporate team, employment specialist Emily Pritty with Louise Gordon handling the tax issues of the deal.
Parker said the firm was introduced to DCD after acting for the vendors on its acquisition of Done and Dusted.
“We were given a six-week timetable to acquire three different TV companies together with raising equity and bank funding,” he added. “It was very intensive work in a limited time period and we were pleased to be able to put our expertise in the independent television production sector to good use once again.”
The director-shareholders of West Park Pictures were advised on the legal issues of the disposal by Davenport Lyons. The firm’s team included a range of corporate, tax, employment and intellectual property specialists led by partner Alon Domb.
Domb said the firm was recommended to work on the deal by West Park’s managing director, Sarah Gregson, who has a long-standing relationship with Davenport Lyons.
“This transaction was one of three concurrent acquisitions undertaken by DCD and was achieved within an ambitious time frame,” Domb said. “We were very pleased to act for the vendors in this transaction and wish them a very successful relationship with DCD Media.”
