ITV makes $360m Leftfield move

ITV Studios (ITVS) has taken a controlling stake in Pawn Stars producer Leftfield Entertainment, a deal it said makes it the largest independent producer of unscripted programming in the US.

Brent Montgomery

The acquisition represents further growth stateside for the UK broadcaster ITV’s in-house production arm, which has acquired Gurney Productions, High Noon Entertainment, Thinkfactory Media and DiGa Vision there in the past 18 months.

ITVS will make an initial cash payment of US$360m for 80% of Leftfield, with further potential payments dependent upon Leftfield’s “continued delivery of significant profit growth,” with the option to buy the remaining 20% open until 2019.

New York-based Leftfield Entertainment Group was created when Leftfield Pictures acquired Real Housewives of New Jersey producer Sirens Media in March 2013, followed shortly afterwards by the creation of two joint ventures: Loud Television and Outpost Entertainment.

Leftfield Pictures sold its first series in 2008 and the group now produces more than 300 hours of unscripted programming a year for over 30 US networks, including the hugely successful reality show Pawn Stars for History.

Founder Brent Montgomery will remain CEO of the Leftfield Group, ITVS said, and will continue to seek partnerships and joint ventures to grow the business under the Leftfield Entertainment banner. Sirens Media, Loud Television and Outpost Entertainment will all continue to report into Montgomery.

ITV delivered stellar financial results earlier this year thanks to its growing production business, which has included the acquisition of So Television, The Garden and Big Talk in the UK.

“Leftfield is a fantastic success story, rapidly growing from a single pilot to become one of the biggest indies in the US,” said ITV CEO Adam Crozier. “The team has combined creativity with strong production expertise, with over 70% of the business coming from returning series and a pipeline of new ideas coming through in 2014 and 2015 that is really encouraging.

“The acquisition of the Leftfield Group represents a significant addition to ITV Studios as we continue to build our global content business over the long term.”

Montgomery added: “Our agreement with ITV marks a major milestone in the company’s evolution. Two decades into the explosion of unscripted television, our business is changing more rapidly than ever.

“To continue developing aggressively for emerging markets, creating new genres and working with the most talented and inspired producers – both in the US and abroad – requires collaboration and partnership. Our teammates at ITV are in sync with Leftfield creatively and commercially, and I’m looking forward to working with them for the next five years and beyond.”

The deal between ITVS and Leftfield was brokered by About Corporate Finance.