Canada’s Kew Media Group has acquired Essential Quail Media, a joint venture between Essential Media and Entertainment and Quail Television, for an initial purchase price of $32.8 million, comprising $20 million in cash and $12.8 million in shares.
Essential Quail Media, which has offices in LA, Dallas-Fort Worth and Sydney, was formed in 2016, and has made a variety of lifestyle programs for the US market such as Texas Flip ‘n Move, Restored, Mom and Me, and Holiday Cookie Builds.
There is the potential for EQ Media to make an additional $32.5 million from the sale based on it meeting certain financial and other tests over the next three years.
KEW founder and executive chairman said: “I first got to know EQ Media CEO Chris Hilton more than 10 years ago and have always been very impressed with what the EQ Media team have been able to accomplish. This acquisition bolsters KEW’s presence in the US and provides KEW with a diversified revenue platform in Australia.”
EQ Media’s senior management team, including Hilton and chief operating officer Greg Quail, will continue on with the company after the sale is complete.
“Since founding Essential in 2006, we have grown the business to become a leading content producer,” said Hilton. “We now have the opportunity to take it to the next level by partnering with KEW and accessing its strong international distribution platform.”
Other production companies in the KEW group are Architect Films, Awesome Media & Entertainment, Bristow Global Media, Campfire Film & Television, Collins Avenue Productions, Frantic Films, Jigsaw Productions, Media Headquarters, Our House Media, Sienna Films and Spirit Digital Media; and distribution companies KEW MEDIA and TCB Media Rights.
The deal expected to be completed by early July, subject to customary closing conditions, including certain third party consents and approval by the Toronto Stock Exchange.