Germany’s ProSiebenSat.1 Group has sold the U.S. division of Red Arrow Studios’ production business to Peter Chernin’s The North Road Company.
The sale includes such prodcos as Kinetic Content, Left/Right, 44 Blue, Half Yard Productions and Dorsey Pictures. The purchase price, subject to customary adjustments, stands at approximately US$200 million (approximately €189 million). The transaction is based on an enterprise value of US$310 million (€293 million).
Founded this year by Peter Chernin, The North Road is a global, multi-genre studio that produces scripted, documentary, and non-scripted film and TV content. The Red Arrow Studios U.S. prodcos mark the first significant acquisition for the newly formed company, which has backing from Providence Equity Partners and Apollo, and also includes Chernin Entertainment and Words + Pictures under its umbrella.
According to ProSiebenSat.1, the deal has been approved by antitrust authorities and the transaction has closed.
ProSiebenSat.1 will retain German prodco Redseven Entertainment and the European prodcos CPL Productions, Endor Productions, Snowman Productions and July August. Distribution arm Red Arrow Studios International will also remain in the group, as will digital outfit Studio 71.
Rainer Beaujean, group CEO of ProSiebenSat.1 Media SE, said in a statement: “We continuously verify that our companies are fully aligned with our strategy and financial targets. In the entertainment business, this means that we need production companies that understand the cultural characteristics and preferences of our viewers. After all, local content is what sets us apart from the competition.
“Our U.S. production companies have created successful and popular TV brands in the U.S. market, but do not strengthen our strategy in the German-speaking region in the long term. For North Road, they will make a significant contribution. We wish them all the best for this and thank them very much for our time together.”
Unscripted content produced by companies within the U.S. stable includes such series as Kinetic Content’s Love Is Blind (pictured, Netflix), Left/Right’s The Weekly (FX and Hulu), 44 Blue’s Wahlburgers (A&E), Half Yard Productions’ Say Yes to the Dress (TLC) and Dorsey Pictures’ Building Alaska (Discovery).