LDC exits Plimsoll Productions in GBP 131m sale to ITV

Wahida Ahmed
14 June 2022

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LDC has sold its minority stake in Plimsoll Productions to ITV in a deal that valued the Bristol-based independent television production company at GBP 131m.

The British free-to-air television network will acquire a 79.5% stake in the company for around GBP 103.5m, with the remaining shares to be held by Plimsoll's CEO and founder Grant Mansfield, members of the management team and strategic investors, according to a press release. The acquisition is due to complete on 1st July 2022.

There are call and put arrangements in place that will give ITV the option of acquiring the outstanding 20.5% of share capital. The consideration payable by ITV for the remainder of Plimsoll's share capital is dependent on Plimsoll's profit growth performance in the period to 31 December 2027, is capped at GBP 79.5m and payable from 2028 onwards, according to the press release.

Mansfield along with senior management team and creatives will continue to manage the business. They will work alongside ITV Studios Managing Director Julian Bellamy and director of Unscripted in the UK, Angela Jain and their team.

A spokesperson for ITV told Unquote that Plimsoll was sold in a competitive process and ITV was the preferred bidder.

Plimsoll generated EBITDA of GBP 10m for the 12 months to 31 August 2021. Under the new ownership structure, Plimsoll will report to a calendar year and under ITV's episodic revenue recognition policy. Following this reporting system, Plimsoll is forecasted to deliver EBITDA of around GBP 5.5m in H2 2022, according to the press release.

LDC invested in Plimsoll with a minority stake in a deal led by Mansfield in 2019 that valued the company at approximately GBP 80m. Under LDC's ownership the business has grown sales from GBP 35m in FY19 to GBP 50m in FY21, according to a press release by the sponsor.

During LDC's tenure, Plimsoll Productions invested in natural history and documentary programming, launched a factual drama division and grew both organically and through acquisition. In September 2020, it acquired Magnify Media, a Bristol-based distribution company which develops content and licence rights. Plimsoll Productions appointed Mark Itkin, a former WME partner, to its board to advise on strategy.

ITV had a pre-existing relationship with Plimsoll Productions dating back to 2021 as ITV is the distributor of A year on Planet Earth, a factual series narrated by Stephen Fry. With the acquisition of Plimsoll, ITV aims to diversify its offering its presence in the unscripted space as well as grow its international content business. Plimsoll Productions has a network consisting of all the global streamers and this acquisition will strengthen and deepen ITV Studios relationships with those streamers, according to the press release.

Company
Plimsoll Productions was founded in Bristol in 2013. The factual programmes producer has several accolades including a Bafta, Emmy and Academy award. Its programmes are aired in 200 countries. Notable work includes Tiny World and Giant World for Apple+; Hostile Planet and Supernatural Planet for Disney; Night on Earth and Animal for Netflix and the upcoming landmark series, A Year on Planet Earth for ITV.

People
LDC - Dewi Hughes (partner and head of LDC in the South West & Wales).
ITV Studios – Carolyn McCall (CEO), Julian Bellamy (managing director).
Plimsoll Productions - Grant Mansfield (founder, CEO).

Advisers
Vendor (LDC, Plimsoll Productions) - Houlihan Lokey (corporate finance); Osborne Clarke (legal), PwC (financial due diligence); CIL (commercial due diligence); Deloitte (tax).