Hasbro Inc. (NASDAQ: HAS) shares dipped on Friday after the firm announced that it would be acquiring eOne in an all-cash transaction. Through this acquisition, Hasbro is looking to advance its position as a leading global play and entertainment company.
Ultimately, Hasbro will acquire eOne for a total of $4 billion (€3.3 billion). Under the terms of the deal, eOne shareholders will receive €5.60 in cash for each common share of eOne, which represents a 31% premium to eOne’s 30-day volume-weighted average price as of August 22.
The acquisition will add global preschool brands with proven success and strong financial returns across platforms to Hasbro’s portfolio. eOne’s capabilities to bring high-quality content across platforms will strengthen Hasbro’s end-to-end ability to monetize and bring to market its IP in increasingly attractive new formats.
Some of the most recognizable brands being added are Peppa Pig, PJ Masks and Ricky Zoom.
Hasbro expects to realize in-sourcing and other global annual run rate synergies of approximately $130 million by 2022. Also, the addition of eOne to Hasbro is expected to be accretive to adjusted EPS in the first year following the transaction.
Brian Goldner, Hasbro board chair and chief executive, commented:
The acquisition of eOne adds beloved story-led global family brands that deliver strong operating returns to Hasbro’s portfolio and provides a pipeline of new brand creation driven by family-oriented storytelling, which will now include Hasbro’s IP. In addition, Hasbro will leverage eOne’s immersive entertainment capabilities to bring our portfolio of brands that have appeal to gamers, fans and families to all screens globally and realize full franchise economics across our blueprint strategy for shareholders. We are excited to welcome eOne’s talented employees from around the world into the Hasbro family.
Shares of Hasbro traded down about 6% early Friday, at $107.51 in a 52-week range of $76.84 to $126.87.