CME Acquires Distribution Company

HAMILTON: Central European Media Enterprises has agreed to acquire Bontonfilm, a film, television, home-entertainment and digital distribution company with operations in the Czech Republic and Slovak Republic.

The acquisition was carried out by the CME Media Pro subsidiary from Bancroft Private Equity. In 2010, Bontonfilm had revenues of about $37 million. The purchase price includes initial cash consideration of $11 million, subject to a minimum cash balance of $2 million remaining in Bontonfilm. Additional cash consideration of a maximum of $1.5 million may be payable to the sellers in December 2011, depending on the OIBDA achieved by Bontonfilm for 2010, the amount of cash and working capital in the business at closing and the satisfaction of certain other indemnification obligations.

“Bontonfilm is an OIBDA positive and cash generative business that will have an immediate accretive impact on CME’s bottom line," said Adrian Sarbu, CME’s president and CEO. "This acquisition greatly complements our Czech and Slovak broadcasting operations. It will enable us to maximize the value of our own library in both markets and increase third party revenues and OIBDA of Media Pro Entertainment.”