Blue Ant acquires several Boat Rocker production assets, goes public via reverse IPO
Boat Rocker owns The Great Canadian Baking Show producer Proper Television
Blue Ant Media in Canada has confirmed it is to acquire several of Boat Rocker’s production assets as part of a manoeuvre that will see it go public on the Toronto Stock Exchange (TSX).
Through the deal, revealed exclusively by C21 earlier this month, Blue Ant will acquire unscripted production companies Insight Productions and Proper Television and animation studio Jam Filled Entertainment.
Insight Productions makes shows including Bell Media’s The Amazing Race Canada while Proper Television produces the CBC’s The Great Canadian Baking Show.
Meanwhile, the remaining Boat Rocker production assets will be divided up in various transactions. Primarily, its scripted, unscripted and kids and family TV studio, as well as its distribution, brand and franchise management divisions will be acquired by Boat Rocker heads Ivan Schneeberg, David Fortier and John Young in a management buyout executed under a new company called IDJCo.
IDJCo will acquire those production assets for a principal amount of C$18m (US$12.5m) in a deal, payable over six years and with an additional C$1m lump sum payable in the sixth year, that is being guaranteed by Fairfax Financial Holdings. IDJCo will continue to operate those assets under the Boat Rocker name.
Prior to the deal, Boat Rocker was publicly listed on the TSX while Blue Ant was private. Following the transaction, which is still subject to customary closing conditions, Blue Ant will execute its initial public offering (IPO) via a reverse take-over.
The transaction meaningfully beefs up Blue Ant’s Canadian production business – collectively, Insight Productions, Proper Television and Jam Filled Entertainment generated revenue of C$118m in 2024 – and gives it the public listing that has long been part of its planned trajectory.
Blue Ant said it generated C$196m (US$136.7m) in the most recent fiscal year, ending August 31, 2024, up 16% from the prior year, with around 47% of that revenue (C$92m) coming from international markets. In fiscal 2024, Blue Ant turned a profit of C$18m, versus a loss of C$27m in 2023, profit of C$13m in 2022 and profit of C$60m in 2021.
Once the deal closes, Blue Ant’s shareholders will own around 73.5% of the publicly listed entity’s subordinate voting shares, while Boat Rocker shareholders will hold the remaining 26.5%.
Blue Ant Media CEO Michael MacMillan will lead the new entity as CEO, with Blue Ant’s current chair Brad Martin being named chair of the board of directors. MacMillan will have voting control of approximately 77.5% of the total votes in the new company.
The public listing positions Blue Ant to continue making further acquisitions, with the company noting that it “sees a significant pipeline of M&A opportunities at attractive valuations, driven by challenges faced by over-leveraged, sub-scale, and undiversified competitors.”
The connective tissue between the two companies is Canadian investment group Fairfax Financial, which holds significant stakes in both. Fairfax has entered into several agreements that will support and backstop the deal.
“This is an opportunistic moment for Blue Ant to go public, paving the way for long-term value creation,” said MacMillan.
“We are confident that this transaction will unlock significant value for all shareholders. Through the combination of our public listing, a strengthened balance sheet, and significant net cash post-transaction, we believe that we are strategically positioned for profitable global growth, both organically and through M&A.”
