HIT Buys Gullane
by Amanda-Jane Doran -- Publishers Weekly, 7/15/2002
After months of wrangling, Gullane has advised its shareholders to accept a £139 million ($215 million) offer from rival HIT Entertainment.
The cash and shares offer was formally agreed on July 5; the new combined children's character and licensing company, which will control British favorites Thomas the Tank Engine and Bob the Builder as well as U.S. star Barney, will be worth nearly £500 million. HIT will also take control of David and Charles's children's books, which was part of Gullane's portfolio of companies. The casualties of the deal are likely to be poorly performing characters such as Sooty the Bear, whose appeal is restricted to the U.K., and Guinness World Records, purchased by Gullane 12 months ago, whose flat U.S. sales caused the presale profits warning.
Gullane chairman Adam Mills was happy at the outcome: "The combined entity will be the major European player in children's rights management." HIT will be in a position to compete directly with its American counterparts and will look to expand further in the global market.
