Hasbro and Entertainment One announced that they have entered into a definitive agreement for the acquisition of Entertainment One by Hasbro in an all-cash transaction valued at approximately £3.3bn or $4.0bn. According to the terms of the agreement, Entertainment One shareholders will receive £5.60 in cash for each common share. This represents a 31% premium to the company’s 30-day volume weighted average price (VWAP)
Hasbro expects to realise in-sourcing and other global annual run rate synergies of approximately $130m by 2022. According to the company integration benefits will yield substantial savings from moving a significant portion of Entertainment One’s toy business in-house and enhancing the profitability of Entertainment One’s licensing and merchandising activities.