HiT Entertainment, the children’s media group and owner of popular brands including Thomas the Tank Engine, Angelina Ballerina and Bob the Builder, is in serious discussions with its lenders as it struggles to meet its loan commitments, and may be forced to hive off one or more of its assets.
However, the company’s lenders, which include Deutsch Bank, Merrill Lynch and Bank of America, are said to be opposed to a firesale which may result in its top brands being sold at a discounted value. This would leave them with collateral over a less valuable portfolio.
Private equity group Apax bought HiT Entertainment through Sunshine Acquisition Ltd in May 2005 for £489.4 million in a leveraged buyout.
Apax is reportedly looking at a number of other options which include a fresh cash injection of £15 million and an extension of the banking covenants. The firm’s lenders may also be considering swapping some of the debt for equity.
HiT’s problems stem in part to a downturn in toy sales in the United States, together with a general decline in worldwide DVD sales. This has been exacerbated in the UK by the demise of Woolworths, one of its biggest customers.
The international advisory firm Evercore partners were brought in last year to look at possible brand disposals, though nothing eventuated. However, it is thought that Disney may well still be interested in bidding for one or two of the larger brands, such as Thomas the Tank Engine at an earnings multiple of around 7-8.
HiT Entertainment must find some kind of restructuring solution by mid-March, when it will have to report its latest results to lenders. 
Represents an opportunity for an acquirer seeking a three surgery, predominantly private dentistry located in Pembrokeshire.
FREEHOLD
Predominately NHS dental surgery with scope for physical expansion, private growth and extended services.
FREEHOLD
Represents an opportunity for a dental practice acquirer seeking a seven surgery mixed dentistry operating since 1978.
FREEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.