Aleph, Crestview back Framestore's acquisition of C3M

Eliza Punshi
06 November 2020

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Private equity firms Aleph Capital Partners and Crestview Partners have backed London-based visual effects company Framestore in its takeover of CompanyТ 3/ Method (C3M), a post-production company based in California.

Following deal completion, Aleph and Crestview will become the majority shareholders of the enlarged company.

Unquote understands that Chinese company Cultural Investment Holdings – which, according to a report by the BBC, acquired a 75% in Framestore for £150m in 2016 – will remain a shareholder.

Aleph and Crestview formed a €1.2bn strategic alliance in 2014 to invest in companies based in the UK and Europe.

Following the investment from Aleph and Crestview, the merged business will provide services ranging from concept design through to digital and post-production, and will employ 4,000 staff.

Brian Cassidy, a partner and head of media at Crestview, said in a statement that the enlarged company was well-positioned to capitalise on the unprecedented global demand for video content across a range of distribution platforms.

Framestore founder Sir William Sargent said the acquisition reinforced its global business footprint by deepening roots in California, increasing headcount in India, and giving the two companies the necessary scale to compete effectively.

According to a 2018 report by the BBC, Framestore's revenues exceeded £129m, with Sargent telling the publication that its revenues had grown by 12-15% every year since it was founded in 1986.

London based GP Aleph Capital focuses on complex, off-market situations, providing growth capital to European companies.

Company
Founded in 1986 and based in London, Framestore is a visual effects and production services company with creative studios in Los Angeles, New York, Chicago, Montréal and Mumbai. The company has been involved in films such as Avengers: End Game, Blade Runner 2049, and Gravity, as well as original series for streaming services Amazon, Netflix and Disney+. It also has worked on theme park experiences.

Founded in 1997 and headquartered in Santa Monica, C3M is based across 11 cities in the US, the UK, Canada, Australia and India. It partners with directors, studios, advertising agencies and streaming platforms, and has worked on films such as 1917 and the upcoming film Top Gun: Maverick.

People
Aleph Capital – Hugues Lepic (CEO, founder).
Crestview – Brian Cassidy (partner, head of media).
Framestore – Sir William Sargent (co-founder, CEO).
C3M – Stefan Sonnenfeld (founder).

Advisers
Equity – Weil Gotshal & Manges (legal); Davis Polk & Wardwell (legal); PwC (financial due diligence).
Company – Ashurst (legal); Moelis & Company (financial due diligence); Stroock & Stroock & Lavan (legal).