Spun Gold launches M&A push

Spun Gold is eyeing M&A opportunities as it seeks to double its revenues to £30m.

As part of ambitious growth plans, Spun Gold has taken a majority stake in former ITV Studios creative director Lee Connolly’s fledgling entertainment outfit Penny Lane Entertainment, and is in advanced talks to acquire a British blue-chip natural history producer.

The company has self-funded the acquisition of Penny Lane, which has secured yet-to-be-announced “big event entertainment” commissions from the BBC and ITV, with plans to pour in further investment for working capital and to recruit talent.

It will adopt a similar approach with the “established” natural history business, according to founder and chief executive Nick Bullen. He said the acquisitions will broaden Spun Gold’s programming beyond its factual-entertainment output and help it “grow to the next stage”.

“We’ve touched on blue-chip natural history in the past, but never really gone down that route. Natural history has become a genre that money is being spent on, and [our acquisition target] has got quite a lot of business outside of the UK,” he said.

“My initial thought was to become a larger fact-ent business but it makes more sense to build a diversified group”
Nick Bullen, Spun Gold

Spun Gold is also exploring funding options with private equity firms and private investors to take its ambitions to the next level. That initiative could lead to a deal with a third “well-known” business, which already has a turnover of around £10m.

“How best to scale the business in a changing landscape is interesting,” Bullen said. “My initial thought was to become a larger fact-ent business, but it has become clear that it makes more sense to build a diversified group.”

Bullen expects to appoint a dedicated business development executive this year to drive the M&A side of the business.

“This is all new to me,” he said. “I’m a TV producer and the core team’s priority is to continue to grow our existing business. We don’t want to take our eye off the ball.”

Bullen is also plotting US expansion, using royal-focused SVoD service True Royalty as the foundation.

“The conversations we’re having are whether to back a small US start-up or partner up for a co-pro venture,” he said. “We’re not going to open a massive office in the States straight away, but part of our growth strategy is to set up shop there. Our royal programming has done very well and we’ll use that as a springboard.”

Bullen admitted the “for sale sign is always hanging on the door”, with his expansion plans made with an exit strategy in mind.

“Growing [through acquisition] creates a bigger, multi-layered business that is sale-able at a slightly different scale,” he said. “There are different buyers for different-sized indies.”