KNOXVILLE, Tenn.--(BUSINESS WIRE)--Jul. 2, 2015-- Scripps Networks Interactive Inc. (NYSE: SNI) has closed on its agreement to acquire a 52.7 percent interest in Poland's premier multi-platform media company, TVN, from ITI and Canal+ Group for an all-cash consideration of â‚¬584 million. Scripps Networks Interactive will also assume â‚¬856 million of debt.
"The acquisition of TVN marks an important step forward in Scripps Networks Interactive's international expansion strategy, and gives us a leadership position in one of the most important media markets in Central Europe," said Kenneth W. Lowe, president, chairman and chief executive officer, Scripps Networks Interactive. "TVN is a strong and profitable company run by a great management team under Markus Tellenbach, and we believe our ownership can help ensure that the business continues to grow for the long-term."
Under Polish law, Scripps Networks Interactive is required to launch a public tender offer to increase its ownership interest in TVN to 66 percent, within three months of closing on the initial purchase. Scripps Networks Interactive has previously announced its intention to acquire 100 percent of TVN and delist it from the Warsaw Stock Exchange. No price for the offer has yet been set.
Three Scripps Networks Interactive senior executives have been appointed to the TVN supervisory board. Joe NeCastro, chief development officer; Jim Samples, president, Scripps Networks International; and Cynthia Gibson, chief legal officer, will all sit on the supervisory board, which oversees the activities of TVN's operational management board.
TVN is one of the leading media companies in Poland, with a portfolio of free-to-air and pay TV lifestyle and entertainment channels including TVN, TVN 7, TVN Style, TTV, TVN Turbo as well as Poland's leading 24-hour news channel, TVN24, and business news channel TVN24 Biznes i Swiat. The channels have enabled TVN to attract a market-leading 22 percent share of Polish viewing in 2014. TVN Media is Poland's leading advertising sales house, last year securing a 33 percent share of the market in advertising revenue for TVN's own portfolio of channels, as well as selling advertising for a number of other commercial broadcasters in Poland.
The acquisition is the latest move in Scripps Networks Interactive's expansion into Europe. In 2011, the company completed a joint-venture partnership with BBC Worldwide in the United Kingdom for the UKTV portfolio of 10 entertainment and lifestyle channels. In addition, Scripps Networks' international division distributes seven lifestyle brands including HGTV, Food Network, Travel Channel, DIY Network, Cooking Channel, Fine Living and Asian Food Channel, reaching more than 200 million cumulative subscribers in nearly 180 countries and territories across Europe, Middle East, Africa, Asia Pacific, Latin America and the Caribbean.
Scripps Networks Interactive's financial advisors for the transaction were Barclays and Blackstone Advisory Partners L.P., while legal advice was provided by Latham & Watkins LLP and DomaÅ„ski Zakrzewski Palinka sp.k.
About Scripps Networks Interactive
Scripps Networks Interactive is one of the leading developers of engaging lifestyle content in the home, food and travel categories for television, the Internet and emerging platforms. The company's lifestyle media portfolio comprises popular television and Internet brands HGTV, DIY Network, Food Network, Cooking Channel, Travel Channel and Great American Country, which collectively reach more than 190 million consumers each month. Companion websites complement on-air programming with video and social media that inform and inspire. The company's global networks reach millions of consumers across North and South America, Asia-Pacific, Europe, the Middle East and Africa. Scripps Networks Interactive is headquartered in Knoxville, Tenn. For more information, please visit http://www.scrippsnetworksinteractive.com.
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Source: Scripps Networks Interactive
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