European production and distribution group Federation Studios, which owns more than 30 labels including the UK’s Vertigo Films and Italy’s Fabula Pictures, has formally appointed advisors to explore investment or a sale, according to a report in Screen’s sister title Broadcast.
The Paris-based company has engaged Morgan Stanley to assess its options, with a price tag of around €500m (£417m) believed to have been attached.
Federation employs around 280 staff across Europe and the US, producing and distributing across genres including drama, factual, kids & family, documentaries and film.
Numerous companies have been mooted as potential suitors including All3Media, Peter Chernin’s The North Road Company and ITV Studios (ITVS).
Federation founder and chief executive Pascal Breton retains a majority stake in the group and runs it with Lionel Uzan and Marco Chimenz, who left ITVS-owned Cattleya last year to become group co-managing director.
Federation expansion
The move comes almost four years since private equity outfit Montefiore invested around €50m (£42m) in the company back in 2021, enabling Federation to accelerate its growth following its formation by Breton in 2014.
The group’s labels include a raft of leading European producers, including Vertigo, whose film credits include Bronson and Monsters, fellow British outfit Federation Stories – which is behind forthcoming UKTV drama I, Jack Wright – and Fabula, which recently produced Brigands for Netflix.
Federation also houses more than a dozen French firms including Oscar-winner Bonne Pioche (March Of The Penguins), Bardot producer Federation Studios France and kids & family firm Cottonwood Media.
It is also the owner of three US labels including Picture Perfect Federation, launched in partnership with ex-Lionsgate boss Patrick Wachsberger, as well as Federation Spain and Drama Team in Tel Aviv.
The company moved into film sales last year, launching international sales division Ginger & Fed. Its AFM slate includes Fabien Gorgeart’s comedy drama What Is Love? starring Laure Calamy and Vincent Macaigne.
Federation’s scripted TV slate includes Netflix’s Italian drama Baby, Canal+ thriller The Bureau and Prime Video’s Find Me In Paris, while upcoming series range from Lucky Luke for Disney+ and France Televisions, to The CW’s Sherlock & Daughter.
The group has also been growing its distribution arm, having been behind projects including the BBC’s Around The World In 80 Days.
M&A market continues to fizz
News of Morgan Stanley’s appointment, which comes almost a year since reports first surfaced that Federation was exploring investment or a sale, is being closely watched by industry insiders as the M&A market hots up across Europe.
Earlier this week news emerged that Slow Horses and The King’s Speech producer See-Saw Films is also exploring investment or a sale, while Reuters reported last week that RTL is exploring a potential merger for its production and distribution giant Fremantle.
The flurry of activity follows a Mipcom at which the likelihood of further consolidation was voiced by numerous execs, with private equity-backed groups driving much of the demand on the buying side, sources said.
All3 was acquired by RedBird IMI earlier this year – chief exec Jane Turton spoke of increased scripted acquisitions during her keynote in Cannes last month – while Chernin’s North Road Company is backed by Providence Equity Partners and Apollo.
Federation and ITVS declined to comment on today’s news; All3 said it “does not comment on speculation”; and North Road had not responded at press time.
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