FFI HOLDINGS PLC ACQUIRES LEADING ENTERTAINMENT INSURER REEL MEDIA LLC
London 21 December 2017 - FFI Holdings PLC (AIM: FFI), the world leader in the provision of completion contracts to the entertainment industry for films, television, mini-series and streaming product, announced today that it has acquired Reel Media LLC ("Reel Media"), a leading US-based entertainment insurance agency and specialty brokerage that offers numerous insurance products to the entertainment industry globally.
Today's announcement, which follows the signing of a Letter of Intent between the two companies in June 2017, marks a broadening of FFI's capabilities beyond its core completion contract business to include the management, through Reel Media, of other forms of entertainment risk cover for the first time. FFI management view the management of various forms of entertainment risk as a significant growth opportunity for the company.
Reel Media's best-in-class products, experienced underwriting team and worldwide claims handling capabilities have established Reel Media as the industry benchmark for entertainment insurance agency services that include various pre-production through post production risks across the entertainment spectrum. Together, with its subsidiary Reel Media Canada, the company delivers creative and tailored solutions for entertainment, live, touring and contingency insurance needs worldwide, with a reach to over 80 countries.
The Company is also exploring various affiliations with other insurance intermediaries to further grow this line of business. We hope to announce additional transactions during the first calendar quarter of 2018.
In the trailing twelve months, Reel Media generated $9.9 million in revenues and adjusted EBITDA of $2.56 million. FFI is purchasing 100% of Reel Media on an instalment basis, with an initial cash payment of $7.25 million and 5 annual payments equivalent to a 6 times multiple of 8.6% of trailing EBITDA thereafter.
The current management of Reel Media will continue to oversee the operations and growth of the company going forward.
Commenting on today's acquisition, Steven Ransohoff, CEO of FFI Holdings, said: "The acquisition of Reel Media is a further step in growing FFI Holdings and establishes us as a major player in the market to provide intermediary services for entertainment risk insurance." "Alongside our recent acquisitions in post-production services, today's announcement is a continued demonstration of our commitment to deploy the proceeds of our recent IPO to growth opportunities for our shareholders."
Marc Idelson, the CEO of Reel Media, said: "I have known and worked with FFI successfully for a decade and this transaction is a milestone event for us as we are now a part of a premier entertainment services platform. This deal will allow us to expand our list of intermediary services to the entertainment field and beyond."
About FFI Holdings PLC
FFI Holdings PLC (AIM: FFI) is the holding company of Film Finances Inc. ("FFI"), the world's leading provider of completion contracts to the entertainment industry, which offer assurance to the financiers of film, TV, mini-series and online media content that productions will be completed on time and on budget. These contracts serve to offload risks to production budgets and timelines for financiers, as well as for FFI through long-standing insurance relationships.
Since its founding in the 1950s, FFI has issued contracts on approximately 7,000 productions. These include many of the film industry's best known-titles, ranging from the first Bond movie (Dr. No, 1962) to The Hunger Games (2012) and Oscar winning films such as 12 Years a Slave (2013) and La-La Land (2016).
FFI is also a fast-growing global provider of post-production equipment and services for the entertainment industry. FFI entered this business in February 2017 through the acquisition of Pivotal Post and consolidated its position in this market further through the purchase of EMS-Cineworks Digital Studios in November 2017.
Over successive decades FFI has grown globally to become a trusted, iconic brand at the centre of the film industry. Headquartered in Los Angeles, USA, it has 11 offices globally, including in London, Stockholm, Toronto, New York, Cape Town, Cologne and Shanghai.
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