Golden opportunity
Publisher's reorg plan includes buyout by DIC
The proposed takeover by Burbank-based DIC, financed by its majority owner Bain Capital, includes $80 million in cash and $90 million in debt assumption. New York-based Golden Books asked the U.S. Bankruptcy Court in Wilmington, Del., to approve the deal in filing for Chapter 11 reorganization Monday.
Acquisition would make Golden Books a privately held company. Goal is to combine under one corporate family DIC characters like Inspector Gadget and Sonic the Hedgehog with characters in Golden Books' 500,000-title TV and film library, such as Lassie, Underdog and Frosty the Snowman.
Golden Books said the deal should take 60 days to close, including bankruptcy court review and approval.
"We are looking forward to the successful integration of Golden Books with DIC and are excited to play a part in the restructuring and turnaround necessary to accomplish that goal," Bain managing director Joe Pretlow said. "We will continue to acquire other branded children's assets that fit our strategic goals both domestically and internationally."
Boston-based Bain backed longtime DIC topper Andy Heyward in re-acquiring the kidvid producer from recent owner Disney in November. The firm has counted entertainment investments in its diverse portfolio regularly over the years, including the acquisition of onetime vid distrib Live Entertainment, which Bain morphed into film distrib Artisan Entertainment.
The proposed DIC-Bain takeover of Golden Books will "enable us to capitalize on the tremendous growth opportunities before us," said Golden Books chairman and chief exec Richard Snyder, who would be co-chairman of DIC and CEO of Golden Books once the deal is completed.
Deal marks the second time Golden Books has filed for Chapter 11. Heavy debts forced the company into bankruptcy reorganization in January 2000.
Last year, Golden Books ended a seven-decade-long licensing deal with Disney under which the publisher brought out story, color and activity books based on Mouse House characters.
The Golden Books imprint, which has long been home to such brands as Pat the Bunny, the Poky Little Puppy and Lassie, will remain an intact subsidiary of DIC.
In recent years, Golden Books has seen $150 million in annual net sales. Its shares have been trading at penny-stock levels, and share price closed down 67% to 3¢ on Monday.
