Beyond acquires TCB Media Rights from Kew Media administrators
Australia- and UK-based distributor and producer Beyond International (BYI) has struck a deal to acquire non-scripted specialists TCB Media Rights from the administrators of Kew Media Group (KMG).
The acquisition, which is subject to approval by the Canadian authorities, will be completed via Ireland-based Beyond Entertainment and see the company acquire TCB’s entire share capital.
The deal with FTI Consulting Canada – Kew’s administrators – will also provide TCB with enough funds to repay debt owed to the now defunct Canadian producer-distributor, according to S+P Global Intelligence, which broke the news yesterday.
In a filing to the Australian Stock Exchange, Beyond Entertainment said it would use its existing cash and debt to fund the deal, which equates to less than 10% of its current assets as of 31 December, 2019.
Mikael Borglund, CEO of Beyond, said the acquisition “is expected to significantly increase the scale of the Beyond Distribution business. Over the first 12 months, it is anticipated that the acquisition will be cash flow positive and earnings per share accretive to BYI.”
TCB was set up by Paul Heaney in 2012, who five years later sold the company to Kew Media Group. The latter went into administration last month, leaving TCB to look for a way to extricate itself from Kew.
Earlier this month, the profitable UK-based producer and distributor greenlit two more original factual titles – Ice Machines and Hitler’s Supercars – continuing its strategy of commissioning its own shows.
Kew was placed into administration at the start of March, with its directors – including founders Peter Sussman and CEO Steven Silver – leaving the company. FTI Consulting was then appointed as administrators at Kew, whose future had been in doubt for several months.
Companies first started to look to exit the ailing group last year, as first reported by TBI, with firms such as Dance Moms producer Collins Avenue Entertainment being picked up by The Content Group, part of Steve Michael’s Asylum Entertainment Group.
Other deals have seen Glasgow-based producer Two Rivers Media buy out KMG’s stake after receiving support from Noble Grossart Investments and Channel 4’s Indie Growth Fund. Canadian producer Frantic Films became the latest company to buy itself out of the stricken group on Friday.
Frantic’s CEO Jamie Brown personally financed a deal to repurchase a 100% stake in the TV and film production company from Kew, which had acquired the prodco in March 2017.
Kew was launched by Sussman and Silver using an investment vehicle to acquire Content Media Corp and six other producers for a combined C$104m.