With AMC having helped grow RLJ Entertainment's digital distribution business, sale is to a particularly appropriate buyer, JH Partners reports
— JH Partners LLC, a leading private equity firm, announced the sale of its stake in RLJ Entertainment Inc. (RLJE) to AMC Networks.
In 2010, JH Partners invested in Image Entertainment, a Chatsworth, California-based media production and distribution company founded in 1981. Two years later, that company was combined with Acorn Media Group, with owners of Image Entertainment preferred stock receiving $22 million in cash and promissory notes under the terms of a deal led by Black Entertainment Television founder Robert L. Johnson. As an owner of Image Entertainment common stock at the time, JH Partners became a shareholder in RLJ Entertainment, the parent company created to facilitate the combination of the two businesses.
"Since its initial investment in RLJE in 2016, AMC has been instrumental in building RLJE’s digital reach, and their acquisition of JH Partners’ interests represents a further commitment to the business," said Steve Baus, CFO of JH Partners. "There could hardly be a more appropriate or better qualified buyer of our stake in RLJE."
Based in Silver Spring, Maryland, RLJE serves a number of distinct audiences with a range of over-the-top (OTT) streaming channels and other types of media distribution. Most popular among these are the Acorn TV and Urban Movie Channel OTT services, with the former focusing on British dramas and independent films, and the latter specializing in content aimed at the urban market.
In addition to these popular OTT offerings, RLJE also makes its exclusive content available in a variety of other formats, including broadcast and paid cable and satellite television, DVD and Blu-ray disc, theatrical and non-theatrical releases, and a number of digital distribution models such as electronic sell-through and video-on-demand. Serving audiences throughout North America, the United Kingdom, and Australia, RLJE also develops new programming through its UK-based Acorn Media Enterprises subsidiary, which is a 64-percent owner of Agatha Christie Limited.
As JH Partners sells its stake in RLJ Entertainment Inc., AMC Networks demonstrates the depth of its commitment to helping the company become an even more prominent and successful producer and distributor of high quality digital entertainment. More information about JH Partners can be found at the firm's website.
About JH Partners LLC:
Specializing in growth-oriented, middle-market consumer products and services, the JH Partners investment team leverages decades of combined operational experience and a deep, focus-enabled understanding of each market on every private equity project.
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