The Guardian

Boomerang Media buys Postman Pat owner Entertainment Rights
Basil Brush and He-Man licensing firm's UK and US operations sold off after going into administration

Mark Sweney The Guardian, Wednesday 1 April 2009 13.51 BST


Postman Pat: one of Entertainment Rights' properties.

Entertainment Rights, the company that owns the licensing rights to children's characters such as Postman Pat and Basil Brush, has gone into administration with its UK and US operations sold to Boomerang Media.

The deal with Boomerang Media, which is backed by a US private equity firm managed by the co-founders of Classic Media, which Entertainment Rights acquired in 2006, will save the jobs of 90 staff working in the UK and US.
Entertainment Rights, which has today suspended its shares and will have its stock market listing cancelled from tomorrow, said last month that none of the bidders for the business were willing to buy it as a going concern.

"The board of Entertainment Rights has explored a broad range of strategic options over the past six months including the possibility of restructuring or refinancing the company's debt, raising new equity and a sale of all or parts of the business," the company said today. "Despite the financial support of the group's lender through this period, the group has been unable to achieve a solvent restructuring of the company."
Boomerang Media, which is backed by the Chicago-based private equity firm GTCR, has acquired the US and UK operations of Entertainment Rights and both will continue to trade as normal. The sale will not result in any return of money to Entertainment Rights shareholders. The company has debts of more than £130m.
"The sale secures the ongoing activities of the group's trading subsidiaries, allowing the former businesses of Entertainment Rights to survive under new ownership," said the company. "The new owners have indicated their intention to invest in the business to further develop its strong portfolio of intellectual property."
Boomerang Media owner GTCR is jointly managed by Classic Media co-founders Eric Ellenbogen and John Engelman.
Entertainment Rights' acquisition of Classic Media, which owns the rights to Lassie and The Lone Ranger, for £107m in 2006, helped create the massive debt which has now brought the company to its knees.
Other rumoured bidders had included private equity house Apax, which already owns rival children's character group Hit Entertainment, and the investment vehicle of Haim Saban, the entrepreneur behind Power Rangers.