Channel 4 makes splashy first indie acquisition

Channel 4 has made its first official step into the realm of indie ownership by taking a majority stake in Glasgow-based Firecrest Films.

The acquisition was made under C4’s fledgling Creative Investment Fund (CIF), established earlier this year as part of the PSB’s twin-track approach to IP ownership, alongside the creation of its in-house production unit.

Financial details of the deal were not disclosed, but it is understood it is structured with a pathway to 100% ownership – per the auspices of the CIF. C4 had previously owned 25% of the Murder Trial indie as part of CIF predecessor the Indie Growth Fund (IGF).

The acquisition was negotiated by Caroline Murphy, former head of the IGF and now head of the CIF until she leaves the broadcaster at the end of the year. Firecrest had been part of the IGF since 2017, alongside labels such as Yeti, Five Mile Films and Warp Films.

Iain Scollay, Firecrest’s co-founder and creative director, told Broadcast the current state of the industry played a part in the indie’s decision to sell, and that the current set-up with C4 is the “best of both worlds”.

“Being a small or medium-sized indie as the sector rapidly changes is challenging. This deal gives us financial heft and allows us to continue doing what we are doing so well with our fantastic team in Govan,” he explained.

Govan-based Firecrest was founded in 2008 by Scollay and managing director Nicole Kleeman, and specialises in premium documentaries and factual content. The pair will remain in place to run the business.

The indie has built a library of factual returners including five series of Murder Trial, seven instalments of Murder Case and Highland Cops (both for BBC2 and BBC Scotland), BBC Scotland’s Paramedics on Scene and Three Mothers, Two Babies and a Scandal for Amazon Prime Video and Dispatches: The Truth About Nike and Adidas for C4.

Firecrest currently employs nearly 100 staff and freelancers, and in the last three years has given 25 people their first jobs in TV. It runs its own talent development scheme which earned it the inaugural RTS Scotland Impact Award last year. To date, the scheme has supported more than 40 individuals to take a significant step up in their career. It also recently launched its Diverse Talent Programme to broaden the talent pool working in ob-docs.

It won the Broadcast Digital Award for Multichannel Production Company of the Year in 2024, as well as 16 Baftas.

Kleeman said: “We are incredibly proud of the hugely successful business and team we have built in Govan. Our partnership with Channel 4 has taken us from a small regional indie to one of the UK’s most significant documentary producers. This new relationship will give us the security to futureproof the business, continue to grow talent and tell stories.”

Jonathan Allan, interim chief exec at C4, told Broadcast the PSB selected Firecrest because of Kleeman and Scollay’s “acclaimed factual content and alignment with our IP ownership goals”.

He added: “We have supported Nicole and Iain in their outstanding Scottish indie with their high-quality and critically acclaimed factual content for the last eight years. I’m delighted that Channel 4 is now able to develop this important relationship with Firecrest Films through the first acquisition from the Creative Investment Fund.

“This strategy will enable us to diversify revenues and secure Channel 4’s long-term sustainability through generating new income streams that are not wholly reliant on the advertising market.”

Future M&A plans

Allan told Broadcast C4 would continue looking at existing IGF indies as potential acquisitions following the deal, but the PSB will also look further afield.

“The 15 production companies supported by IGF will become an integral part of the CIF and will continue to be supported alongside new investments,” he said.

“Decisions to acquire majority stakes in other businesses will be taken on a case-by-case basis. We will continue to support existing investees on their journey.

“We approach each one on own merits – and work with them in whatever way is best for them.”

Tom Manwaring’s Helion Partners advised Firecrest alongside Lee & Thompson.