The $160 million deal covers the domestic right to more than 600 TV movies, miniseries and series.
Crown Media Holdings Inc., owner and operator of the Hallmark Channel, today announced that it has entered into a definitive agreement for the sale of the domestic rights to its film library to Robert Halmi Sr.’s RHI Enterprises for $160 million.
This announcement follows the appointment yesterday of Henry Schleiff as president and CEO of the company, marking what Crown called “the achievement of two critical objectives and allowing the company to move forward focusing its efforts on the profitability and continued growth of its channels.”
The sale includes all rights in the United States to the more than 600 television movies, miniseries and series in the Crown Media library.
International rights to the library were sold in 2005 to a group of investors composed of Providence Equity Partners, 3i and U.K. television executive David Elstein. Crown Media will have the right to continue to broadcast selected titles from the library on the Hallmark Movie Channel for up to two years.
Proceeds from the transaction will be used by the company to reduce outstanding indebtedness under its bank credit facility and for operating purposes. The purchase price is subject to purchase price adjustments relating to the receivables acquired by RHI.
Crown Media will retain certain residual and participation obligations relating to the assets being sold. RHI has delivered equity and debt financing commitments for the transaction, which are subject to customary conditions.
The transaction is also subject to customary closing conditions, including approval by the applicable regulatory authorities. Crown expects to obtain approval and complete the transaction within six to eight weeks.
Salem Partners LLC acted as Crown Media’s financial adviser.