Hasbro picks up Peppa Pig in $US4bn toys deal

US toys giant Hasbro will pay $US4bn to buy the kids entertainment company that produces Peppa Pig.

Peppa Pig and family visit Australia

US toys giant Hasbro is making a big bet on entertainment aimed at young children.

Hasbro, the world’s largest toy maker in terms of stock market value, said it’s agreed to pay $US4 billion in cash to acquire Entertainment One, an entertainment company that produces content for children and adults.

Hasbro cited Entertainment One assets that are intended to appeal to infants and preschoolers as a key motivator of the deal. Its line-up includes Peppa Pig, which follows a family of pigs; PJ Masks, about a trio of heroes, and Ricky Zoom, which follows a rescue bike.

Shares of Hasbro fell 5 per cent in after-hours trading. The stock is up nearly 41 per cent so far this year.

“The acquisition of (Entertainment One) adds beloved story-led global family brands that deliver strong operating returns to Hasbro’s portfolio and provides a pipeline of new brand creation driven by family-oriented storytelling,” Hasbro chief executive Brian Goldner said in a statement.

The company cited Peppa Pig as an “evergreen” property that has developed a robust audience over the last decade, and said PJ Masks brand is currently rolling out in China. It said Ricky Zoom offers “highly merchandisable content.”

Entertainment One, which is based in Toronto, also produces television, develops film for adults and operates a music business. Hasbro said the company has proven experience in film and television.

Hasbro said it expects to achieve $US120 million in annual cost savings related to the deal by 2022. That will be realised by moving part of Entertainment One’s toy business in house and boosting the profitability of its licensing and merchandising activities.

The companies said the deal must be approved by the Ontario Superior Court of Justice in Canada, as well as Entertainment One shareholders.

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