The world’s largest toymaker has added to its vast family of brands with its acquisition of Entertainment One Ltd for approximately $4 Billion. They will pay $6.86 a share for the brand, about a 30% premium. “By combining two profitable and financially disciplined companies we expect to unlock value in the short- and long-term for our stakeholders,” says Hasbro CFO Deborah Thomas about the deal. The company is confident that this purchase will lead to great returns and a spur a pipeline of new brand creation.
The deal adds treasured global preschool brands, Peppa Pig and PJ Masks, as well as a slate of additional brands in development, including newly introduced Ricky Zoom, to Hasbro’s strong brand portfolio. Surprisingly, shares of Hasbro fell over 5%, to $ 108 in after-hours trading. Hasbro expects to preserve its quarterly dividend and suspend its current share repurchase program while it prioritizes attaining its leverage target.
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