Lions Gate Entertainment Corp. (NYSE:LGF.A) has signed an agreement to acquire Film and TV business of Entertainment One Ltd. for $500 million on August 3, 2023. consisting of $375 million in cash, subject to certain purchase price adjustments, and the assumption by Lionsgate of production financing loans.

The transaction has been approved by both companies? Boards of Directors, approved by Entertainment One Canada Limited?s Board of Directors and remains subject to customary closing conditions, including the receipt of regulatory approvals. The agreement is subject to Hart-Scott-Rodino approval and customary closing conditions.

Hasbro will use the proceeds to retire a minimum of $400 million of floating rate debt by the end of the year, and for other general corporate purposes. The transaction is expected to close by the end of 2023. J.P. Morgan and Centerview Partners served as lead financial advisors to Hasbro in the transaction.

Cravath, Swaine & Moore LLP, Mayer Brown International LLP and Stikeman Elliott LLP are acting as legal counsel to Hasbro and Osler, Hoskin & Harcourt LLP are acting as legal counsel to Entertainment One Canada Limited. Jefferies & Co., Ernst & Young and Sheppard Mullin advised Lionsgate on the transaction.