FFI Holdings PLC Acquisition (5066W)
November 15 2017 - 1:00AM
UK Regulatory
TIDMFFI
RNS Number : 5066W
FFI Holdings PLC
15 November 2017
Press Release
FFI HOLDINGS PLC ACQUIRES LEADING EDITING AND POST-PRODUCTION
COMPANY EPS-CINEWORKS DIGITAL STUDIOS
London, 15 November 2017 - FFI Holdings PLC ("FFI") the world
leader in the provision of completion contracts to the
entertainment industry for films, television, mini-series and
streaming product, announced today that on November 13, 2017 it
completed the acquisition of EPS-Cineworks Digital Studios
("EPS-Cineworks"), a full service, digital, post-editing machine
rental business, servicing numerous theatrical and television
productions. The company, with which FFI signed a Letter of Intent
in September 2017, will significantly enhance FFI's ancillary
services business lines - a key growth market identified in FFI's
business strategy at the time of its Initial Public Offering
("IPO") in June 2017.
With a strong management team and a significant presence in
North America, EPS-Cineworks is at the forefront of post-production
services and technology. The company holds particularly strong
relationships in television and independent projects, which are
seeing growth due to the increased content being produced by
streaming companies that do not have traditional post-production
capabilities.
EPS-Cineworks generated $9.4 million in revenues in FY 2016 and
adjusted EBITDA of $2.7 million. The acquisition price was agreed
as a multiple of 3.5x EBITDA (based on trailing twelve-month
financials ending 31 October 2017) resulting in a total
consideration of $9.54 million. FFI paid 87% cash at closing with
the remainder to be paid in two equal instalments of $600,000 in
late 2018 and early 2019. The current management of EPS-Cineworks
will continue to oversee the operations and growth of the company
going forward.
A number of strong synergies exist between EPS-Cineworks and
FFI's existing editing and post-production rental business Pivotal
Post, which FFI acquired in February 2017. Following the
EPS-Cineworks acquisition, both companies will be able to utilise
each other's resources and expertise to maximise profitability as
FFI strengthens its position as a market leader in the provision of
post-production services in North America.
Steven Ransohoff, CEO of FFI commented, "Today's transaction
underscores FFI's commitment to expanding its ancillary business
offerings, in line with the diversification strategy we set out at
the time of our IPO. We look forward to working with EPS-Cineworks'
talented management team to maximise the synergies between us as we
build a market-leading position in post-production services. We
continue to review further acquisitions in support of this ambition
and look forward to making further announcements in due
course."
Kevin Hyman, CEO of Pivotal Post, who will manage the combined
operation of Pivotal Post and EPS-Cineworks, commented, "With this
acquisition, we will be better able to service the needs of our
customers as the demand for content continues to grow. I look
forward to working with David Goodman and his team at EPS-Cineworks
in order to provide critical services to the film making
community."
Additional information on EPS-Cineworks can be found at
www.epscineworks.com.
About FFI Holdings PLC
FFI Holdings PLC (AIM: FFI) is the holding company of Film
Finances Inc. (FFI), the world's leading provider of completion
contracts to the entertainment industry, which offer assurance to
the financiers of film, TV, mini-series and online media content
that productions will be completed on time and on budget. These
contracts serve to offload risks to production budgets and
timelines for financiers, as well as for FFI through long-standing
insurance relationships.
Since its founding in the 1950s, FFI has issued contracts on
approximately 1,700 productions with gross budgets in excess of
US$17 billion. These include many of the film industry's best
known-titles, ranging from the first Bond movie (Dr. No, 1962) to
The Hunger Games (2012) and Oscar winning films such as 12 Years a
Slave (2013) and La-La Land (2016).
Over successive decades FFI has grown globally to become a
trusted, iconic brand at the centre of the film industry.
Headquartered in Los Angeles, USA, it has 11 offices globally,
including in London, Stockholm, Toronto, New York, Cape Town,
Cologne and Shanghai.
ENQUIRIES:
Hawthorn Advisors (Public Relations)
Andrew Orchard
Victoria Ainsworth
+44 (0) 20 3745 4960
FFI Holdings PLC
David Sasso, Head of Investor Relations
+1 310 275 7323 x292
Liberum Capital Limited (Nomad & Broker)
Steve Pearce
Joshua Hughes
Tel: +44 (0) 20 3100 2000
This information is provided by RNS
The company news service from the London Stock Exchange
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