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DreamWorks Animation Agrees to Acquire Classic Media

DreamWorks Animation SKG, Inc., has entered into an agreement to acquire Classic Media, owner of an extensive portfolio featuring many of the best-known and most-enduring franchises in family entertainment, for $155 million in cash from Boomerang Media Holdings I LLC, a portfolio company of Chicago-based private equity firm GTCR.

With well-established titles such as Casper the Friendly Ghost, Where’s Waldo?, Lassie, The Lone Ranger, George of the Jungle, and Rocky & Bullwinkle, Classic Media’s properties have been a fixture in mainstream entertainment for decades.

Classic Media has approximately 80 employees and is headquartered in New York City, with offices in the UK and a division, Big Idea Entertainment, in Nashville, Tenn.

For the 12 months ending February 29, Classic Media earned net revenue of $82.2 million and operating profit of $19.2 million.

The acquisition of Classic Media will be financed through a combination of cash and borrowings under DreamWorks Animation’s revolving credit facility. The purchase price of $155 million includes amounts required to retire indebtedness.

The transaction is subject to customary closing conditions. DreamWorks Animation expects that the transaction will be completed during the quarter ending September 30.

This post was originally written by Loren  Moreno and published by ToyBook.com. For more news, visit www.toybook.com, follow The Toy Book on Twitter, and like The Toy Book on Facebook. The Toy Book is a bimonthly trade magazine covering the toy industry, published by Adventure Publishing Group.