HandMade Targets Kids’ Sector

LONDON/NEW YORK: HandMade Films, whose assets include the classic Eloise brand, is raising about £17 million via a new share issue and is embarking on a dramatic expansion of its kids business, acquiring New York-based Animation Collective and proposing a merger with National Geographic Kids Entertainment.

The $12 million price for Animation Collective is subject to profit performance over a three year period. HandMade will pay an initial consideration of $1.06 million in cash and shares with approximately $560,000 on completion with assumed debt of approximately $2.5 million. There are also plans for a further investment in children’s productions of £3.22 million. The company has also reached a deal to acquire the rights to several kids properties from the Duchess of York, Sarah Ferguson. The Eloise property will also be housed in the new HandMade Kids division, along with the Nat Geo kids’ properties if the proposed merger goes through. HandMade will invest £3.4 million for working capital in HandMade Kids.  Patrick Meehan, the executive chairman of HandMade plc, commented: “The launch of HandMade Kids into the Handmade Group complements our existing library rights and content; Eloise rights exploitation, film production and film sales divisions."HandMade Kids will have a total of 11 productions aimed at children that are currently on air in the U.S., with eight new ones in development. The new division is recruiting executives to build its international business. The company also proposed the appointments of Richard Northcott as chairman of the board, Simon Flamank as COO and CFO and Keith Luxon as non-executive director.