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May 10 (Reuters) - DHX Media Ltd DHXb.TO is buying the entertainment unit of Iconix Brand Group Inc ICON.O for $345 million, adding the Peanuts comic strip and cartoon character Strawberry Shortcake to its roster of brands that includes "Bob the Builder" and "Teletubbies".
Reuters reported in January that Iconix was exploring a sale of its majority stake in Peanuts Worldwide LLC, which owns the rights to cartoon strip characters Snoopy and Charlie Brown. was also looking to sell its Strawberry Shortcake brand, which is based on a character that rose to fame in the 1980s as a doll for young girls, Reuters reported in January.
DHX Media will be buying an 80 pct stake in the Peanuts brand. The remaining 20 percent will continue to be held by members of the family of Charles Schulz, the creator of the brand, DHX said on Wednesday.
The deal value will be financed through a combination of cash on hand, new debt financing facility and a private placement offering of subscription receipts exchangeable for convertible debentures, DHX said. Media, which owns rights to popular children's television shows, said the deal would be 6 percent to 10 percent accretive to earnings per share, on a pro forma basis.
DHX said it also expects to realize annual cost synergies of C$5 million ($3.65 million) within the first year post-closing and C$25 million within the first five years.
The deal is expected to close on or around June 30. ($1 = 1.37 Canadian dollars)