Ten Alps buys 3BM Television
Ten Alps Communications PLC
27 February 2004
FOR RELEASE 07.00 AM 27 FEBRUARY 2004
Ten Alps buys leading factual TV production company 3BM Television
Ten Alps Communications PLC ('Ten Alps'), the AIM-listed media group, announces
the acquisition of award-winning factual TV production company 3BM Television
Limited ('3BM', 'the company') for an initial consideration of £630,000. The
deal is based on the Net Assets of 3BM being a minimum of £465,000. 3BM
currently has £475,000 in cash.
3BM makes high quality history, science, current affairs and contemporary
factual programming, with around 60 significant productions since its inception
in 1995. The company has production centres in London and Bath and 18 staff.
Current programmes include: Warlords, a major four-part history series for
Channel 4; Zero Hour, a five-part history series for Discovery; Ten Days to
D-Day, a two-part drama-documentary film, and Children of Abraham, a 3-part
series, both for Channel 4; plus two six-part series which are being
re-versioned for Five.
3BM currently has an order book showing £2m in contracted business for the next
10 months, and other possible projects beyond. 3BM's profit before tax for the
last three financial years to September averaged £110,000, after investment in
the company's rights-owned programme library. Turnover for the year to September
2003 was £2.6m and profit before tax was £79,000.
Ten Alps Chief Executive Alex Connock said: '3BM is a first-class producer with
an excellent team, programming slate and library and we are delighted to be
working with the company. Its historical programming expertise and its strong
client base offer a boost to Ten Alps' ambition of becoming the leading
independent production player in the factual TV field.'
The cash element of the consideration has been funded from Ten Alps' existing
cash resources. The total possible consideration of £1.1m paid for 3BM is as
follows. £630,000 is payable in cash on completion. A further £230,000 is held
in escrow pending the completion on budget of two key projects. Then a further
maximum £120,000 in cash and £120,000 in new ordinary shares is payable on
achievement of profits of £220,000 in each of the years to September 2004 and
2005. (Please see the end of this announcement for full detail of this earnout).
3BM's programmes include the international award-winning Age of Terror series
for Discovery Europe; Torso In The Thames - Adam's Story, A World in Arms and
Abused and Catholic all for Channel 4; Allies at War and Exocet for BBC2; and
the acclaimed Kings and Queens and Who Killed Marilyn Monroe? for Channel 5.
3BM co-founder and Chairman Simon Berthon, said: '3BM has always been about
making the highest-quality factual programming. By joining Ten Alps we have the
opportunity to grow the company within a successful creative and business
environment.'
Each of the three award-winning directors of 3BM who currently are TV producers
for the company has signed a service agreement for the next two years. These are
Simon Berthon, Dan Korn (executive producer and Managing Director) and Marion
Milne (executive producer heading 3BM West.)
The 3BM acquisition supports Ten Alps' focus on becoming the UK's leading
independent producer of factual TV programming. Through other companies in its
group, Ten Alps is also producing social affairs programming for Channel 4 and
political programming for the BBC amongst other broadcasters.
Ten Alps will not be merging either the 3BM brand or offices with its other
companies. 'Through experience and analysis of acquisitions in this industry we
are convinced that TV brands and creative teams enhance their value in the
market if they retain their own distinct identity,' said Nitil Patel, Ten Alps
Finance Director. 'Nonetheless we will target sales and cost synergies in areas
such as programme library exploitation where it is appropriate.'
The detailed profit and project-delivery targets in the 3BM acquisition deal
consist of two components. First, £230,000 is held in escrow for the former
shareholders, pending delivery on budget of two key projects. Second, in each of
the two twelve-month financial periods to September 2004 and September 2005, a
pre-tax profits target has been set. Achievement of pre-tax profits within a
range from £190,000 to £220,000 for each period will result in a total further
consideration of up to £240,000, which will be payable 50% in cash and 50% in
shares, issued at the prevailing bid price. Taken together with the initial
payment, these two tiers of payment together provide the maximum of £1.1m.
ENDS
Binns & Co PR Ltd
Jacqui Graves:
020 7786 9600
Ten Alps Communications PLC
Alex Connock - CEO
Main Office: 0207 089 3686
Nitil Patel- FD 07990 578 356
www.tenalps.com
3BM Television Ltd.
Dan Korn Managing Director
0207 251 2512
www.3bmtv.co.uk
Editors notes
3BM: strong factual production company
3BM has developed strong, ongoing relations with major British and international
broadcasters which have resulted in award-winning productions.
In 2003, 3BM was awarded the UK Broadcast Award for Best Multi-channel Programme
for its four part series, Age of Terror, produced by Oscar-winning director, Jon
Blair and distributed throughout the world by 3BM in conjunction with Louise
Rosen Ltd. The year also saw a repeat of the company's hugely popular series,
Kings & Queens, produced by 3BM West for Channel Five, presented by Nigel Spivey
and distributed internationally by BBC Worldwide
Other 3BM productions to have made an international impact in recent years
include Cannibal: The Real Hannibal Lecters (Channel 4 International/ HBO),
Fighting the G-Force (Channel 4 International/TLC), Catastrophe: The Day The Sun
Went Out (Channel 4 International/WNET), Who Burnt Rome (Channel 4 International
/WNET), Allies At War for Channel 4 and PBS, the Emmy-nominated Holocaust on
Trial for Channel 4 and WGBH NOVA, the Indie-nominated The Duel and the World
Documentary Gold Medal-award winner, Adolf and Eva.
Highlights for 2004 include the production of Warlords, a major four-part
history series for Channel 4 about Churchill, Stalin, Roosevelt and Hitler; Zero
Hour, a five-part history series for Discovery; Ten Days To D-Day, a two-part
drama-documentary film, again for Channel 4 and Children of Abraham, a
ground-breaking three-part series for Channel 4.
In addition, the company will be re-versioning two six-part series for Channel
Five, one on SAS Missions, presented by Ken Hames and another on Great Escapes,
presented by Saul David. Both of these will be produced by 3BM West. And as
well as its core factual output, 3BM is continuing to explore new programme
markets and genres including a number of popular prime time formats and drama.
3BM's programme library includes the international award-winning Age of Terror
series for Discovery; Torso In The Thames - Adam's Story, Abused and Catholic
and The Strangest Viking, all for Channel 4 Television; Who Killed Marilyn
Monroe? and the acclaimed, co-produced series, World War I in Colour and Heroes
of World War II for Channel Five; and Revealed and The Search for King Midas'
Tomb for Discovery.
3BM Director profiles
SIMON BERTHON (Chairman): Simon's recent productions include the award-winning
Age of Terror, A World in Arms, Allies at War (he also wrote the book of the
same title),The Duel, Catastrophe, The Real Rupert Murdoch, Secret History's
Lords of the Underworld' and, for Dispatches, The Accident, the true account of
the conspiracy theories surrounding the Princess Diana crash. He was founding
editor of ITV's peak time network current affairs series The Big Story
(1993-1996) and previously deputy editor of ITV's World in Action. His awards
include a Premier Ondas at the Barcelona Film and TV Festival for The Big Story,
a Gold Hugo at the Chicago Film Festival for World In Action and a Gold Medal at
the New York Film and Television Festival for the six part documentary series
The Shape of the World (1991), a Granada / WNET production which he devised,
wrote and executive produced. He also wrote the accompanying book. He became
Chairman of the company on 10 September 2003.
DANIEL KORN (Managing Director): Dan's most recent films include the third film
in the award winning Age of Terror series, Torso In The Thames: Adam's Story,
Exocet, Cannibal, The Duchess and the Headless Man, the Emmy Award-nominated
Holocaust on Trial, The Great Train Robbery and The Real Albert Goering. After
beginning his career with Touch Productions, Daniel joined 3BM in 1996 and
produced programmes ranging from Harold Wilson: the Final Years and The Porn
King, the Stripper and the Bent Coppers for Channel 4 Secret History, to
Fighting the G-Force for Channel 4 Equinox. He became a director of the company
on 1 January 1999 and was appointed Managing Director on 10th September 2003.
MARION MILNE (Executive Producer): Marion's productions include Adolf and Eva
(winner of the World Documentary Gold Medal at New York 2002) and Hitler's Fixer
for ITV, Anthony Eden (BBC2), The Real John Betjeman for Channel Four Arts,
Desert Rats for ITV and Berlin Airlift for Channel 4 / OPB. After a career in
publishing, she switched to television production in 1989 joining LWT's The
South Bank Show. She worked on What did you do in the War, Auntie ?, Hiroshima,
Cry Hungary and The Suez Crisis with fellow 3BM director Jeremy Bennett and
directed Nick Goes to New College for BBC 2 and two episodes of Auntie - the
Inside Story of the BBC for BBC 1. Recent credits have included the series Kings
and Queens for Channel 5 as Producer/Director and she is currently producer/
director of Ten Days to D-Day for Channel 4 Television.
JEREMY BENNETT (Founding partner and non-executive director): Jeremy is leaving
the company after a distinguished career, which included the Emmy Award-winning
Cuban Missile Crisis documentary.
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