ITV has acquired a majority stake in Leftfield Entertainment Group for $360 million, in a deal that will see it become the largest unscripted independent producer in the US.
The deal, which marks a part of ITV’s strategy to build an international content business, will see ITV own 80% of the Group, with further potential payments dependent upon Leftfield’s delivery of significant profit growth.
The total maximum consideration for 100% of Leftfield is $800 million, including the initial payment, which will only be paid if Leftfield delivers average earnings before interest, taxes, depreciation, and amortisation (EBIDTA) of at least $130 million per annum in the next three to five years.
In 2013 Leftfield – which owns Leftfield Pictures, Sirens Media, Loud Television and Outpost Entertainment – delivered $38 million of EBIDTA on a proforma basis and ITV expects the company to continue to deliver strong growth at a high margin into 2014.
The company’s programming portfolio includes Pawn Stars UK, Counting Cars and Bravo’s Real Housewives of New Jersey.
“Leftfield is a fantastic success story, rapidly growing from a single pilot to become one of the biggest indies in the US,” said ITV’s chief executive, Adam Crozier.
“The team has a combined creativity with strong production expertise, with over 70% of the business coming from returning series and a pipeline of new ideas coming through in 2014 and into 2015 that is really encouraging.
“[The deal] represents a significant addition to ITV studios as we continues to build our global content business over the long term.”
Brent Montgomery, chief executive officer of Leftfield Entertainment Group, who will remain in post, added: “This is an incredibly exciting time at Leftfield, as our agreement with ITV marks a major milestone in the company’s evolution and I am looking forward to working with them for the next five years and beyond.
“Two decades into the explosion of unscripted television, our business is changing more rapidly than ever. We’re confident that, together with our new partners at ITV, we will continue to deliver breakthrough programming for buyers around the world.”
