Deal includes Target’s rights businesses as well as production labels Pink Sands and Target US.
UK distributor Metrodome Group has confirmed that it has completed its acquisition of Target Entertainment, the TV distribution rights management business.
This move comes despite publicly traded Metrodome announcing on July 30 that talks to acquire the company had broken down.
Under the terms of the deal, Metrodome will buy the shares of both Target’s rights’ businesses, including its distribution and consumer products teams, and its production labels, Pink Sands (run by Charles Finch) and Target US. The drama production arm, Greenlit, is not covered in the deal. With the purchase price and working capital, Metrodome said it will also invest in the company – seeing a total spend of $4.7m (£3m).
Alison Rayson, Target Entertainment’s founder, will remain as Chief Executive of Target and also take a seat on Metrodome’s Board. The companies said they will work together to build their libraries and assets, taking ownership stakes “in global brands across key genres.” Metrodome and Target said the merged company would offer producers and rights owners “a one-stop shop platform.” The businesses together have combined annual revenues over £20m.
Metrodome has had a tumultuous few months, as former CEO Peter Urie resigned in March, followed by popular general manager Sara Frain and publicity head Christelle Randall. The company had said at the time that it would “significantly reduce its theatrical distribution business.” The company does continue to buy films, notably at Cannes market its acquisitions included Aftershock, The Monk and My Best Enemy.
Mark Webster, Chairman & CEO of Metrodome, said in a statement: “Metrodome has significant financial backing, and we have been looking for a complimentary business to combine with our profitable film distribution operation over the past months. Target Entertainment is a perfect fit, which we predict will double our revenue and the size of the business within a short space of time.”
Target CEO Alison Rayson added: “Target’s refinancing process has been a tough and lengthy one, however the superb outcome of achieving such strong financial backers for the business in Mark Webster and Metrodome makes it more than worthwhile for the company’s client base and staff. Target’s consolidation into the Metrodome group will provide the company with more firepower for rights acquisitions and with an enhanced back office service. The two companies together will create a market leading independent rights business with a much broader offering domestically and globally.”
Metrodome’s past releases include Donnie Darko, Monster, The Counterfeiters, Fifty Dead Men Walking, Days of Glory, Water, I Am Love, Lebanon, and current release The Secret In Their Eyes. The company’s first co-production, Age of Heroes starring Sean Bean and Danny Dyer, will be released in early 2011.
Target’s had worked on films including Pete Travis’ Endgame, Jan Dunn’s The Calling and Kfir Yefe’s The Smell of Apples before cooling off on film production recently.
Compass Advisers worked with Metrodome on the deal.