DHX Media acquires Family Channel and Disney Junior

Pascale Paoli-Lebailly | 28-11-2013

DHX Media Ltd has entered into a definitive agreement to acquire the children's channel Family in Canada, as well as Disney XD and the English and French-language versions of preschool network Disney Junior from Bell Media for approximately $170 million.

Over the trailing 12 months ended August 2013, these channels generated revenue of approximately $81 million and direct EBITDA of approximately $27 million.

Over the past three years, revenue has increased at a compounded rate of approximately 7%.

The purchase price is expected to be financed with an expanded underwritten credit facility and with cash on hand.

The transaction is expected to close in 2014 pending approval by the Competition Bureau and the Canadian Radio-television and Telecommunications Commission (CRTC) and satisfaction of other customary closing conditions.

"The acquisition of these high quality Canadian channels represents an exciting new addition to DHX, one that complements and enhances all areas of our business and positions us for our next stage of growth," said Michael Donovan, CEO of DHX Media.

Family was launched in 1988 and has approximately 5.7 million subscribers and an English market share of 29.6% for viewers aged two to 17. 60% of its acquired series come from Disney.

Launched in 2007, Disney Junior English has approximately 4.9 million subscribers, representing a market share of 13.4% among its primary target audience of kids aged two to seven.

The French version offers commercial-free entertainment that focuses on magical, musical and developmental-based programming for kids aged two to six. Disney Junior (French) kicked off in 2010 and has approximately half a million subscribers.

Launched in 2011, Disney XD has approximately 4.5 million subscribers, representing a market share of 3.5% among its primary target audience of boys aged six to 12.