LONDON — The U.K. broadcast network ITV has confirmed that it has agreed to acquire Boom Supervisory, the holding company of the Twofour Group.
Twofour’s U.K. and U.S. production companies, which produced more than 1,200 hours of programming last year, include Twofour, Twofour America, Boomerang, Oxford Scientific Films, Indus, Boom Cymru and the scripted producer Delightful Industries. The group’s shows include “Educating Yorkshire,” “The Jump,” “Posh Pawn,” “The Hotel Inspector” and “Animal Odd Couples.”
Twofour also owns 51% of drama indie Mainstreet Pictures, and has a distribution business, Twofour Rights, which owns a catalog of more than 550 hours of finished programming and formats.
ITV, which is acquiring Twofour from majority shareholder LDC, will pay an initial cash consideration of £55 million ($86.6 million) for 75% of the group. There is a put-and-call option for the remaining 25% that can be exercised at the end of 2017 and between the end of 2019 and 2021. Twofour has a put-and-call option to acquire the remaining 49% of Mainstreet that can be exercised between 2018 and 2023.
The maximum consideration for Twofour and the remaining 49% of Mainstreet is £280 million ($441 million), which will be paid out if the businesses deliver exceptional profit growth.
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 U.K. and internationally.”
Melanie Leach, chief executive of Twofour, said: “ITV Studios has a great track record in backing creative talent and we look forward to working with them as we continue to grow the group in the U.K. and internationally.”