FBoy Island and Bad Moms producer STX Entertainment has been acquired by private equity firm Najafi Companies for $173m.
STX, which had been struggling with debt following movies such as Uglydolls, revealed it had struck a definitive agreement for a $173m takeover with Njafi last year.
Lionsgate then reportedly explored an acquisition, but that potential move fell through leaving Najafi the latest private equity firm to sink its teeth into a content outfit. AS Birch Grove LP and 777 Partners provided financing for the deal, with Indian media firm Eros International selling its stake.
Structure & outlook
Robert Simonds, who founded STX in 2014, will be chairman and Noah Fogelson, who was president, will become the new CEO. John Friedberg will continue overseeing the international and acquisitions divisions for the motion picture group, while Adam Fogelson remains CFO.
STX said the deal would “serve as a growth engine to develop, market and distribute content globally through multiple distribution channels including theatrical releases, international and direct to streaming services as well as video on demand.”
STX moved into TV with HBO Max’s Fboy Island last year, having previously been behind movies such as The Gentlemen, My Spy, The Mauritanian, The Contractor and Queenpins.
Jahm Najafi, founder & CEO of The Najafi Companies, said: “As investors, we are long-term minded, and we believe in the power of storytelling and fostering a studio that is friendly to storytellers.
“We have the utmost respect for this +100-year-old ecosystem, and we look forward to supporting this partnership and the ways modern entertainment studios are evolving in the future.”
Simonds added: “We have solidified our international reputation and notable ambitions thus far, and we look forward to continually proving ourselves with each project we push forward.”