LONDON — One of Europe’s leading media groups, Central European Media Enterprises, is to takeover distributor Bontonfilm for $11 million in cash.
CME, which runs a stable of television stations across Central and Eastern Europe and is positioning itself as a major regional media company concentrating on production and distribution across cinema, home entertainment, television and new media, also agreed to pay up to a further $1.5 million by the end of the year depending on Bontonfilm’s 2010 audited profit figures.
Bontonfilm, the leading film and home entertainment distributor in the Czech Republic and Slovakia, generated unaudited revenues of £37 million last year, producing profits of $2.6 million.
The CME deal stipulates that a cash balance of around $2 million should remain in Bontonfilm. Subject to approval by the Czech antimonopoly office, the deal is expected to close by the summer.
Adrian Sarbu, CME’s president and CEO, said Bonton was a profitable, cash-generating company that would have an immediate positive effect on CME’s bottom line.
“This acquisition greatly complements our Czech and Slovak broadcasting operations. It will enable us to maximize the value of our own library in both markets.”
CME’s television stations include TV Nova in the Czech Republic and TV Markiza in Slovakia as well as stations in countries that include Bulgaria, Croatia, Romania and Slovenia.