Cookie Jar and DIC to Merge

LOS ANGELES/TORONTO, June
20: DIC Entertainment Holdings has entered into a merger deal with
Toronto-based Cookie Jar Entertainment, in a transaction valued at $87.6
million.

Under the terms of the
agreement, Cookie Jar will pay approximately $31.5 million for all of the
issued and outstanding equity in DIC. Upon closing, DIC will continue as a
subsidiary of Cookie Jar, which will remain a private company. Subject to approval by DIC’s shareholders and other
customary approvals, the deal is expected to close by fall.

The transaction will
result in a combined animation library of some 6,000 half hours of programming.
It also includes the licensing and merchandising rights to brands such as
American Greetings’ Strawberry Shortcake, which has earned $3 billion at retail since DIC relaunched the brand
in 2004, and Mommy & Me, a
parent-oriented, direct-to-retail product line, as well as Inspector Gadget, Horseland and Cake. The merger
covers DIC’s one-third interest in the international children’s channel KidsCo
as well.

‘‘We are
thrilled to be joining forces with Cookie Jar’s highly respected team,’’ said
DIC’s chairman and CEO, Andy Heyward. ‘‘Our two organizations are a perfect
fit, with compelling brands, strong licensing and merchandising capabilities
and a commitment to quality programming that reflects the needs and aspirations
of children and families around the world. I look forward to working closely
with Michael and Toper in bringing our two organizations together and charting
our future growth.’’

“This
transaction will bring together two dynamic and successful organizations with a
shared passion for excellence in children’s entertainment,” added Cookie Jar’s
CEO, Michael Hirsh. “With the greater scale and resources of the combined
company, we will be in a much stronger position to deliver on our promise of
bringing the best entertainment and educational content to children and
families around the world through the medium of their choice. I first had the
pleasure of working with Andy Heyward on the original Inspector Gadget series and look forward to welcoming
him into our team.”

—By Kristin
Brzoznowski