DIC Entertainment Goes Independent

DIC Entertainment Goes Independent
Chairman & CEO Andy Heyward Partners with Bain Capital, Inc. In Buyout of DIC Entertainment From Disney

DIC Entertainment chairman and CEO Andy Heyward today announced that he has partnered with Bain Capital, Inc. to acquire the assets of DIC Entertainment, L.P. from The Walt Disney Company. Through the buyout, DIC now independently owns the second largest library of American animation in the world with more than 2,500 half-hours of programming. Heyward will continue as chairman and CEO of the animation studio. Financial terms of the agreement were not disclosed.

"DIC and The Walt Disney Company have enjoyed five exciting years together, but we desired to return to our roots as independent producers of children's content for the worldwide market," stated Heyward. "While we continue to be a supplier to myriad Disney units, our independence will facilitate a more diversified slate of programming and help build upon our stature as a premiere global supplier of children's entertainment."

As part of the ongoing association between the two companies, Disney has renewed "Sabrina, The Animated Series" for ABC's "One Saturday Morning" block, ordered 26 new episodes of "Madeline" for The Disney Channel, and is co-producing with DIC two animated direct-to-video films for distribution through Buena Vista Home Video. DIC programming will continue to comprise a substantial portion of the Toon Disney schedule. Additionally, a sequel to the successful live-action motion picture "Inspector Gadget" is currently being developed.

"We are excited to partner with Andy and his exceptional management team in acquiring one of the world's leading children's content companies," said Joe Pretlow, Managing Director, Bain Capital, Inc. "We believe DIC's strong library and character franchises combined with its exciting slate of new productions will provide the company with substantial growth opportunities and position it as a leading entertainment consolidator."

Evidencing an appetite in the marketplace for its programming, DIC is ramping up production to 200 half-hours per year. Along with "Poor Richard's Almanac," a new series currently in production for PBS, DIC is at work producing four other series from an aggressive development slate. DIC's internal growth has mirrored the demand for its product, reflected in such recent hirings as that of Melissa Bomes in the newly created role of executive vice president of worldwide consumer products.

The Disney buyout announcement comes shortly after the annual MIPCOM television market, where DIC announced the relaunch of its international sales division and a newly reassembled sales force, led by longtime kids business veteran Patricia Ryan. The company returned to the market with a broad slate of animated programming, including its new properties "Super Duper Sumos," "Salem," "Action Girls" and "Gadget and the Gadgetinis." DIC also actively licensed its classic properties at MIPCOM, including "Sonic the Hedgehog," "Sherlock Holmes in the 22nd Century," "The Incredible Dennis the Menace" and "The Wacky World of Tex Avery."

A leading entertainment company that develops, produces, distributes and merchandises animated content for children and families worldwide, DIC Entertainment has consistently produced more than 150 half-hours per year for the past 20 years, distinguishing it as one of the most prolific animation studios in the industry. Founded in Paris in 1971, DIC developed enduring ties to the European broadcast and production community. In 1983, the company established a North American presence under the direction of then-animation writer and producer Heyward, so that animation in the U.S. market could be more efficiently produced and sold. Heyward led the company to become one of the most active animation studios in the world, producing more than 1,800 episodes and 60 properties between 1986 and 1993. That year, Heyward formed a limited partnership with Capital Cities/ABC with the company's assets. Following Disney's acquisition of ABC, DIC became an integrated unit of the Disney Filmed Entertainment division, accelerating its growth arc through its representation by the Endeavor Agency, which signed DIC as its first client in 1995.

DIC has received critical acclaim and distinguished honors for its properties throughout its history, including Emmy, Cable Ace, Humanitas and Environmental Media Awards. A prominent and early advocate of responsible and positive-value children's programming, DIC has consistently strived to produce FCC-friendly content including "Captain Planet," the first FCC-friendly show for kids ages 6-11 to find commercial success.

With more than 2,500 half-hours of programming, DIC's catalog is one of the largest and most valuable libraries of children's animation television programming in the entertainment industry, boasting beloved evergreen brands such as "Inspector Gadget," "Where On Earth Is Carmen Sandiego?", "Madeline," "Sonic The Hedgehog" and "Super Mario Bros." In the 1999/2000 television season, the company broadcast 21 regular series in the U.S. airing across cable, network and syndication, representing more regularly scheduled programming than any other children's producer. DIC's programs are watched by approximately 25 million kids in the U.S. each week.

-- Posted November 20, 2000

Source: Company Press Release