Tinopolis, the company behind shows including Question Time and Big Fat Gypsy Weddings and the UK’s largest remaining truly independent TV producer, is up for sale with a price tag of potentially £300m.
A number of media owners and private equity companies have received an information memorandum seeking interest in a range of options including the sale, or part sale, of the Welsh company.
Following a flurry of acquisitions of so-called “super indies” by US media companies in recent years, Tinopolis is the biggest true independent UK TV production company left, according to Televisual magazine’s recently published annual survey of the sector, with a turnover of £200m a year.
Tinopolis owns Sunset + Vine, the sports producer with the £100m contract for BT Sport’s coverage including Premier League and Champions League football, and Channel 4’s Paralympic Games programming; Mentorn Media, the company behind Question Time; and Big Fat Gypsy Weddings producer Firecracker.
According to the memorandum Tinopolis is on track to make about £30m in profits and with a typical sale price usually about 10 times earnings the company is valued at about £300m.
However, with the market for content companies red-hot at the moment, Tinopolis could go for more, with a trade buyer seen more likely than private equity.
The information memorandum, understood to have been sent out by advisory group About Corporate Finance, has gone to a list of prospective parties including ITV, All3Media, Sony and private equity players.
However, a full sale could be a difficult prospect, as senior management rejected a serious offer from Michael Dell’s MSD Capital last year.
Earlier this year Peppa Pig co-owner Entertainment One, which distributes film and TV shows including The Walking Dead, held talks with Tinopolis but no deal was reached.
The easier option, at least for Tinopolis if not what potential buyers might desire, would be the sale of the approximately 48% stake held by private equity firm Vitruvian Partners.
Tinopolis, founded in 1990, de-listed from the Aim stock market in 2008 through a management buyout backed by Vitruvian.
The fund linked to the investment is coming to an end, which has in part prompted the move to seek a sale, or part sale, of Tinopolis.
Private equity companies usually look to exit deals from about three to five years after making a deal, as All3Media shareholder Permira did.
Tinopolis declined to comment.
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