TV production group behind Educating Yorkshire and The Hotel Inspector sold to ITV Studios
LDC, the mid-market private equity investor, has exited its investment in Boom Supervisory Limited, the holding company of Twofour Group (“Twofour”), in a sale to ITV plc.
ITV plc will pay an initial cash consideration of £55million for Twofour Group. The transaction also includes an additional performance based bonus of up to £10million.
Founded in 1989, Twofour is a fast growing group of production companies based in the UK and the US, working with broadcasters around the world to provide award-winning drama, comedy, factual, children’s and entertainment programmes. Its labels include Twofour, Twofour America, Boomerang, Oxford Scientific Films, Indus, Boom Cymru and Delightful Industries.
Voted Broadcast magazine’s Independent Production Company of the Year in 2014, some of its best-known shows include Splash!, with Olympian Tom Daley, the BAFTA award winning Educating Yorkshire, The Hotel Inspector, Animal Odd Couples and Posh Pawn. LDC originally invested in Twofour in October 2013 via Boom Supervisory. Underlying profits (EBITDA) in the group’s 2014 financial year increased to £5million.
ITV is an integrated producer-broadcaster, operating the largest commercial family of channels in the UK. Its ITV Studios business is the largest production company in the UK and produces programming for ITV’s own channels as well as other broadcasters such as the BBC, Channel 4 and Sky. Outside of the UK, it operates production businesses in the US, Australia, Germany, France and the Nordics. Twofour will continue to operate as a standalone brand and its management team will remain with the business. The acquisition does not include the content company The Moment (prev. ONE TWO FOUR), which was spun out of Twofour Group last year and remains an entirely standalone business backed by LDC.
David Andrews, Investment Director at LDC, said: “The acquisition is an ideal strategic fit for both parties. Not only does it provide international distribution for Twofour’s new and existing content, it provides ITV with a highly talented team and award-winning formats. We’re delighted for the business and wish them every success for the future.”
Melanie Leach, Chief Executive Officer of Twofour Group, said: “For more than two decades, Twofour has earned a reputation for developing some of the industry’s most creative, compelling and diverse programming. Joining forces with LDC and Boom Pictures in 2013 helped us achieve that success. Now, as part of ITV, we have the opportunity to take our content to an even greater audience across the world, while developing exciting new programmes with the backing of the UK’s largest production group. This is a fabulous platform to continue building Twofour’s reputation as the home for imaginative and original programmes.”
Kevin Lygo, Managing Director of ITV Studios, said: “Great creative talent, fantastic content and brilliant production expertise are central to ITV Studios’ strategy, so I'm delighted that the Twofour Group is joining our family of production companies as we continue to boost ITV Studios’ growth in the UK and internationally.”