Acquisition of Paperny Entertainment

Entertainment One Ltd.

Acquisition of Paperny Entertainment 

Entertainment One Ltd. is pleased to announce that it has agreed to acquire the Paperny Entertainment group of companies ("Paperny"), a leading independent television producer operating across Canada and the United States, from the Paperny Sellers.

Based in Vancouver, with operations in Toronto and New York, Paperny specialises in the development and production of non-scripted television programming, including a range of character-driven documentaries, reality shows and comedies. Its roster of recent and returning programming successes includes: Chow Masters (Travel Channel (US)), Cold Water Cowboys (Discovery Channel (Canada)), Chopped Canada (Food Network (Canada)), and Yukon Gold (History Channel (Canada)).

In line with the Group's strategy of growing and diversifying its content rights portfolio, following completion, the acquisition will significantly expand eOne's non-scripted and factual production slate, helping to supplement the Group's already diverse, multi-genre television production capabilities. Incrementally, the transaction will also provide a platform for further Group initiatives within non-scripted television programming across the North American market.

Paperny is being acquired for a total consideration of approximately C$29.2 million, satisfied by the issue of 2,571,803 common shares in Entertainment One Ltd. (the "Consideration Shares") and approximately C$14.5 million in cash.

In the year to 31 December 2013, Paperny generated unaudited revenue of C$17.6 million and unaudited net income before income taxes of C$5.1 million. As at 31 December 2013, Paperny had unaudited gross assets of C$20.3 million.

Paperny is led by David Paperny (Founder and President), Audrey Mehler (Founder and Executive Vice President), and Cal Shumiatcher (Executive Vice President). Following completion, these three key members of management will remain with the business on new long term employment contracts.

It is expected that completion will take place on or around 31 July 2014. In completing the acquisition of Paperny, in respect of the Consideration Shares, application will be made to the UK Listing Authority and the London Stock Exchange for 2,571,803 common shares in Entertainment One Ltd. to be admitted to the Official List and to trading on the London Stock Exchange. The shares shall rank pari passu with the existing common shares of the Company.

Paperny comprises: Paperny Entertainment Inc. and Altamont Holdings Ltd.

The Paperny Sellers comprise: David Paperny, Audrey Mehler, Cal Shumiatcher, Completion Investments Inc., Playtime Investments Ltd., 0865631 B.C. Ltd. and CS Family Trust.

Darren Throop, Chief Executive Officer, commented: 

"We are delighted that the Paperny team is joining eOne. Under the leadership of David, Audrey and Cal, Paperny has grown significantly and has developed an excellent reputation for producing high quality, non-scripted television content. As part of our enlarged TV business, we look forward to continuing that development and realising further international distribution opportunities across the eOne Group."

J.P. Morgan Securities plc is acting as corporate broker to the Company and no one else and will not be responsible to any other person for providing the protections afforded to clients of J.P. Morgan in connection with any matter referred to herein.

Notes to Editors:

About Entertainment One

Entertainment One Ltd. (LSE:ETO) is a leading international entertainment company that specialises in the acquisition, production and distribution of film and television content. The Company's comprehensive network extends around the globe including Canada, the US, the UK, Ireland, Spain, Benelux, France, Germany, Scandinavia, Australia, New Zealand, South Africa and South Korea.

The Company provides extensive expertise in film distribution, television and music production, family programming and merchandising and licensing. Its current rights library is exploited across all media formats and includes more than 35,000 film and television titles, 2,800 hours of television programming and 45,000 music tracks.

Further information is available at www.entertainmentone.com or email Redleaf Polhill at [email protected].