Cake’s MBO ends Zinkia pact

UK children’s distribution firm Cake Entertainment has ended its partnership with Zinkia after buying back the Spanish production firm’s 51% majority stake.

The management buy-out (MBO), for an undisclosed fee and funded by private capital, was completed last week with immediate effect.

The deal means all existing legal and commercial ties between Cake and Zinkia will cease, including Cake’s representation of kids property Pocoyo.

The MBO was led by Cake principals Edward Galton and Tom van Waveren, who have jointly run the firm since 2011 following the departure of co-founder Genevieve Dexter. The company sells series such as Space Racers, Total Drama and the newly launched Ella Bella Bingo.

Madrid-based Zinkia, which invested in Cake in 2011, entered administration four months ago after failing to renegotiate the terms of a €2.5m (US$3.4m) loan with a private lender.

The media company became the latest in a long line of Spanish firms to struggle in the midst of the economic downturn that has hit the local kids TV industry.