All3Media is the largest independent production group in the United Kingdom
Discovery Communications and Liberty Global are set to acquire U.K. independent production group All3Media, valued at $930 million.
Discovery and Liberty Global will contribute approximately $150 million in cash for the acquisition. All3Media will remain independently managed with strategic support from Discovery and Liberty Global under the deal.
“This venture allows us to work closely with Liberty Global, a valued partner and the largest international cable company, in managing a financially strong, innovative and creatively prolific production company,” Discovery Communications President and CEO David Zaslav said in a statement.
All3Media produces formats, reality and fiction series with a strong presence in Europe, and boasts 26 “creative centers” around the world. The company owns the “Undercover Boss” and “Million Second Quiz” formats and served as a distributor for Starz's drama “The White Queen.”
“I am delighted that the new strategic owners come with a long-term view of the importance of building a leading global content company and appreciate All3Media's distinctive philosophy of creative freedom and diversity,” Steve Morrison, chairman and co-founder of All3Media, said in a statement.
Discovery Communications and Liberty Global's 50/50 joint venture will acquire All3Media at an enterprise value of approximately $930 million, which represents an EBITDA multiple of approximately 8.5x.
The acquisition will be funded through a combination of equity and new non-recourse credit facilities raised at All3Media, resulting in both companies contributing about $150 million in cash. Under the equal joint venture structure, Discovery Communications and Liberty Global will not consolidate All3Media in their financial statements. The transaction is expected to close in the third quarter, pending regulatory approvals.