Canada’s WildBrain to sell channels in £22m deal

Canada-based kids and family company WildBrain is selling off a majority stake in its channels business after striking a deal with IoM Media Ventures. 

The Nova Scotia-based outfit has agreed to take a 66.66% stake in WildBrain’s broadcast division, which includes Family Channel, Family Jr., WildBrainTV and Télémagino. 

WildBrain expects to receive more than $40m (£22m) over the next four years from the transaction and its continuing involvement in the channels. 

Proceeds from the deal, which remains subject to regulatory approval, will be used by WildBrain primarily to pay down debt. 

The agreement means the Toronto-based firm will only hold a one third stake in the channels business, removing local restrictions around foreign ownership and paving the way for non-Canadian companies to potentially invest in WildBrain. 

WildBrain, which has been behind animations The Snoopy Show, Sonic Prime and Fireman Sam, clarified that there are no planned changes to management, workforce or location of operations for the channels business.  

Josh Scherba, president and chief exec of WildBrain, described the deal as a “critical step forward in simplifying our business” as it seeks “high-growth areas for key global franchises and partnerships.” 

He added: “Financially, we believe it strikes a balance between economic participation for WildBrain while benefiting our leverage profile over the long term.  

“We’re confident that, with IoM, the Channels will pass to a strong independent Canadian studio. As a partner with IoM, we look forward to working with them to uphold the prominent legacy of these Channels with a dedication to delivering best-in-class content for Canadian families.” 

Dana Landry, president and chief exec of IoM Media Ventures Inc., said: “We’re thrilled to deepen our partnership with WildBrain, and we look forward to integrating these Channels and resources into our ecosystem after close of the transaction to accelerate growth as we look to invest boldly in content and expand our footprint in the kids’ and family entertainment space.” 

IoM, which has previously worked with WildBrain on shows including Caillou and Space Ranger Roger, partnered with private investment firm MEP Capital on the deal.