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Lions Gate to Buy Artisan for $160 Million, Plus Debt
Monday October 27, 2:07 pm ET

Lions Gate Entertainment Corp. (AMEX:LGF - News) said Monday that it agreed to acquire Artisan Entertainment Inc., a private independent film producer and distributor, for $160 million cash, plus the assumption of debt.

The proposed acquisition will create a company with more than 8,000 entertainment titles, the companies said.

A Lions Gate spokesman said the acquisition includes the assumption of about $ 40 million in debt, putting the total value of the deal at slightly above $200 million, plus performance-based compensation.

The spokesman added the transaction is expected to be "highly accretive" to Lions Gate's earnings.

Around 2 p.m. EST, shares of Lions Gate were up 27 cents, or 8%, to $3.54. Earlier, the stock hit a 52-week high of $3.75.

The deal for Artisan, of Santa Monica, Calif., comes after an extensive five- month auction, which attracted interest along the way from suitors including comic-book publisher Marvel Enterprises Inc. (NYSE:MVL - News) , Harvey Weinstein's Miramax Films and a team led by ex-USA Films Chairman Scott Greenstein and buyout firm Thomas H. Lee Co., the New York Post reported Monday.

"We enter 2004 with our strongest theatrical slate ever with franchise properties like Dirty Dancing: Havana Nights (co-produced with Miramax Films) and Marvel's incredible comic book legend The Punisher," said Artisan Chief Executive Amir in a prepared statement.

The proposed acquisition of Artisan is expected to close by the end of the year. It is subject to customary closing conditions, including antitrust regulatory approvals.

Under the agreement, Artisan shareholders may receive additional cash based on the performance of certain films as well as other contingent compensation.

Vancouver-based Lions Gate's films include "Monster's Ball," "Gods and Monsters," and "Red Violin."