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ITV pays £55m for majority stake in Twofour Group

ITV pays £55m for majority stake in Twofour Group
Staff Reporter
24 June 2015

ITV has confirmed the acquisition of Twofour Group, the producer  of shows including Educating Yorkshire, The Jump, Posh Pawn, The Hotel Inspector and Animal Odd Couples.

ITV will pay an initial cash consideration of £55m for 75% of the Group.

ITV is acquiring Twofour from majority shareholder LDC, the private equity arm of Lloyds Banking Group.

There is a put and call option for the remaining 25% that can be exercised at the end of 2017 and between the end of 2019 and 2021, with any further payment subject to minimum average EBITA thresholds.

Under the management of chief executive Melanie Leach, Twofour delivered £5 million EBITDA in 2014.

In 2014 the Twofour Group produced over 1,200 hours of programmes, through their production companies including Twofour, Boomerang, Oxford Scientific Films, Indus, Boom Cymru, Twofour America and scripted producer Delightful Industries.
Twofour also owns 51% of drama indie Mainstreet Pictures and has a put and call option to acquire the remaining 49% of its subsidiary Mainstreet that can be exercised between 2018 and 2023.
The total maximum consideration for Twofour and the remaining 49% of Mainstreet is £280million with contingent payments dependent on both businesses delivering exceptional profit growth to £60million in aggregate over the payment period.
The Twofour Group is currently in production with shows including six-part thriller Unforgotten (ITV) and comedy I Want My Wife Back (BBC1) from Mainstreet, Educating Cardiff  (Channel 4) from Twofour, Posh Pawn daytime spin-off The Dealmakers (Channel 4) from Boomerang and Oh My Dog from Oxford Scientific Films (Sky One).
Twofour Rights, the in-house distribution arm of the Group, represents a catalogue of over 550 hours of finished programmes and formats including Storage Hoarders, Ibiza Weekender, Happy Families and Chefs on Trial.
Kevin Lygo, md of ITV Studios, said: “Great creative talent, fantastic content and brilliant production expertise are central to ITV Studios’ strategy, so I'm delighted that the Twofour Group is joining our family of production companies as we continue to boost ITV Studios’ growth in the UK and internationally.”
Leach said: “The management teams across the Twofour Group are delighted to be joining ITV Studios.  ITVS has a great track record in backing creative talent and we look forward to working with them as we continue to grow the group in the UK and internationally.”

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