MUMBAI: DHX Media has entered into a definitive agreement to acquire the business of Cookie Jar Entertainment to create Canada‘s largest children‘s entertainment company.

DHX has acquired Cookie Jar at an enterprise value of $111 million, to be paid through a combination of approximately 36 million DHX shares, $5 million in cash, and the assumption of $66 million of debt.

The combined company will own the world‘s most extensive independent library of children‘s entertainment, including more than 8,550 half hour episodes.

"The acquisition of Cookie Jar is a transformational event for DHX that will significantly enhance our scale and our growth opportunities," said Michael Donovan, Chief Executive Officer of DHX. "Through this combination, we will strengthen our portfolio of brands, global reach, management depth and our position in the rapidly emerging digital distribution channels to become the market leader."

"Today is an exciting day for Canada‘s children‘s entertainment industry. Cookie Jar joining forces with DHX results in a company that is an independent global market leader in all aspects of children‘s entertainment from distribution to production to licensing and merchandising. There is an insatiable appetite for kids‘ content in the new digital streaming universe and we are very well positioned with our extensive library of evergreen, popular and recognizable brands to satisfy the market demand," said Cookie Jar‘s CEO Michael Hirsh.

Following the closing, Michael Donovan, current CEO of DHX, will continue to serve as CEO. Michael Hirsh, current CEO of Cookie Jar, will become Executive Chairman of DHX. Steven DeNure and Dana Landry will continue in their current roles of President & COO, and Chief Financial Officer, respectively. Cookie Jar‘s current President & COO Toper Taylor will continue to focus on digital distribution and business development. Aaron Ames, CFO of Cookie Jar, will assume the role of Chief Integration Officer reporting directly to the CEO.

Cookie Jar has a significant content library and features some of the world‘s most recognizable series including Caillou, Inspector Gadget, and Johnny Test. The company controls Cookie Jar TV, the weekend morning block on CBS. Cookie Jar has offices in Toronto, Los Angeles and in addition, throughout Western Europe, as part of its Copyright Promotions Licensing Group, a leading licensor and merchandiser of third party brands and characters.

Cookie Jar has experienced significant growth in digital distribution, growing revenue from that channel to $8 million in the 12 months ending 31 May. Over the same 12-month period, Cookie Jar had total revenue of $56.7 million and EBITDA of $12.6 million.