Entertainment One Ltd. acquisition of Navarre Entertainment Media Inc
14 May 2007
London, May 14, 2007: Entertainment One Ltd. (the 'Company') today announces that its subsidiary Koch Entertainment LP has entered into a conditional agreement to acquire Navarre Entertainment Media Inc ('Navarre Entertainment'), a distributor of independent music labels in the United States, for a total consideration of US$6.5 million (£3.3 million). The acquisition will be funded by existing cash resources within the Company.
The acquisition adds more than 70 new exclusive distribution agreements which currently generate annual revenues of approximately US$50 million and EBITDA of approximately US$2 million. With this addition, KOCH Entertainment's market share is expected to increase from approximately 1.8% to approximately 2.7%.
Darren Throop, Chief Executive of Entertainment One Ltd. commented: 'This acquisition provides Koch with an excellent opportunity to leverage its existing infrastructure and generate significant cost synergies while consolidating its position as the leading independent music distributor in the United States.'
For further information, please contact:
DDA Public Relations
Lawrence Atkinson
E:
lawrence.atkinson@ddapr.com
T: +44 (0) 20 7932 9800
Alice Gledhill Hall
E:
alice.gledhillhall@ddapr.com
T: +44 (0) 20 7932 9800
Note to the Editors:
Entertainment One Ltd. (LSE: ETO) AIM listed, Entertainment One Ltd's strategy is to build a leading global independent entertainment content ownership and distribution business which acquires films, television programs and music content and exploits these rights in all media throughout the world. Entertainment One is one of the world’s leading international entertainment companies with operations in Canada, the U.S, Benelux and the UK, where it distributes, acquires and owns filmed entertainment and music content in all medias. Entertainment One also owns Koch Entertainment, the largest independent record label in North America and a leading independent distributor of music and video in the United States. www.entertainmentonegroup.com