Kew Media eyes more prodco acquisitions

According to its Q1 results, the company has $32 million in cash, $18.5 million in available borrowings and $90.9 million in shareholders' equity.
May 16, 2017

Kew Media is well positioned to pursue a “steady pipeline of acquisition opportunities,” the company has stated following the company’s first financial report since acquiring six production companies, including London and L.A.-based film and TV distribution company Content Media Corporation (CMC).

In February, Kew announced its proposal to acquire CMC, as well as Canadian prodcos Architect Films, Bristow Global Media, Media Headquarters Film & Television, OHM and Frantic Films. The transaction is tagged at approximately $120.3 million.

The acquisitions, which were finalized on March 20, brings a library of more than 6,000 hours of content under Kew’s umbrella, including factual and documentary content such as Bristow Global Media’s Hockey Wives (pictured), and Our House Media’s Paranormal Survivor

This week, unaudited Q12017 results show Kew has approximately $32 million in cash, with $18.5 million of available borrowings and shareholders’ equity of $90.9 million. The Q1 figures account for 11 days (March 20 to March 31), from when the six acquired companies were brought under the Kew umbrella.

Kew Media Group CEO Steven Silver said the company’s financial results are in line with expectations, with Kew expecting adjusted EBITDA of approximately $19.2 million in 2017.

“Accordingly, the company is well positioned to strategically add to its asset base and continues to assess a steady pipeline of acquisition opportunities,” according to a company statement. Earlier this year, on an investor call, Silver confirmed that there are 16 companies (outside of the six recently acquired companies) that Kew is assessing as potential acquisition targets.

The report also detailed the estimated values of the acquired assets of each of the acquired companies. The total assets for CMC were estimated at $121.2; Bristow Global at $12.6 million; Frantic at $9.4 million; Architect at $9.1 million; Our House at $8 million; and Media HQ at $1.1 million. The total estimated value of the assets acquired is $161.4 million.

In June of 2016, Kew became Canada’s sixth special purpose acquisition company to be listed on the Toronto Stock Exchange and raised $70 million in its initial public offering.

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