WASHINGTON (AFP) -United States (US) toymaker Hasbro announced on Thursday that it is acquiring studio Entertainment One for USD4 billion.
Under the all-cash transaction, Entertainment One shareholders will receive GBP5.6 (USD6.86) per share, according to a statement from Hasbro.
“The acquisition of highly profitable and merchandisable preschool brands is a strategic growth opportunity for Hasbro,” the company said.
Hasbro plans for the acquisition to save it USD130 million through in-sourcing and other synergies by the year 2022.
Three quarters of the acquisition will be carried out with the proceeds of debt financing thanks to a loan of just under a year from Bank of America Merrill Lynch. Approximately USD1 billion-USD1.25 billion will be financed in cash.