HIT Entertainment

HIT Entertainment was a British-American entertainment company focused on children's television, family video, character licensing, and international distribution. It originated in 1982 as Henson International Television, the international distribution arm of Jim Henson Productions. Peter Orton, who had worked with Jim Henson through the Children's Television Workshop, became the new subsidiary's chief executive. The company initially handled international sales of Henson programming, but its strategic direction changed near the end of the 1980s when Jim Henson Productions entered discussions concerning a possible relationship with The Walt Disney Company. Orton and other managers persuaded Henson to allow the distribution operation to become independent, leading to a management buyout in October 1989 and the creation of HIT Communications plc. As an independent company, HIT no longer controlled the Henson catalogue and instead built a portfolio by acquiring distribution rights, investing in productions, and developing children's properties. Early additions included Postman Pat and Alvin and the Chipmunks. From 1991, HIT expanded into co-production, supporting projects such as Where's Wally? and Captain Zed and the Zee Zone, while also financing animated films based on The Wind in the Willows and Peter Rabbit. A wildlife division provided a significant share of revenue during the 1990s, and the company created HIT Video to support direct-to-video activity in the United Kingdom. The company became particularly successful by recognizing the commercial potential of character-led preschool programming. In 1996, it acquired development rights to Keith Chapman's Bob the Builder concept after other producers had rejected it. The series premiered on the BBC in 1999 and became one of the company's most valuable properties. HIT also developed or distributed Kipper, Brambly Hedge, Percy the Park Keeper, Angelina Ballerina, and other preschool titles. Its expansion combined television production with home entertainment, licensing, merchandising, and international representation. In 1998 it established HOT Animation and a consumer-products division, and it created a United States subsidiary as its American business grew. Acquisitions were central to HIT's growth. The purchase of Lyrick Studios for approximately $275 million gave HIT stronger access to the United States market and brought the Barney & Friends franchise into its portfolio. The acquisition of Pingu followed in 2001, while the purchase of Gullane Entertainment in 2002 added the internationally important Thomas & Friends, Fireman Sam, and other properties. HIT later obtained full ownership of Fireman Sam from S4C and developed further brands including Mike the Knight. It also entered distribution and representation arrangements involving The Jim Henson Company, Aardman Animations, Chapman Entertainment, and other rights holders. HIT's business included television production, global program distribution, home video, character licensing, consumer products, live entertainment, and planned theatrical adaptations. It was one of the partners involved in creating PBS Kids Sprout, a 24-hour preschool television service launched with Comcast, PBS, and Sesame Workshop, and it supplied programming to the channel. The company also operated The Little Big Club, a live-events and family-entertainment initiative featuring characters from its portfolio at shopping malls and selected resort locations. Apax Partners acquired HIT in 2005, taking it private and appointing former BBC director general Greg Dyke as chairman. During the private-equity period, HIT sold or transferred several non-core properties, changed home-video distribution arrangements, launched HIT Movies, and pursued new character development. Jeffrey D. Dunn became chief executive in 2008 and emphasized the creation and revitalization of preschool brands. In 2011, Apax explored a sale of the company and received interest f…

HIT Entertainment began in 1982 as Henson International Television, an international distribution business established by Jim Henson, Peter Orton, and Sophie Turner Laing. Orton became chief executive after previously working with Henson through the Children's Television Workshop. The business initially distributed Henson programming outside the United States. In the late 1980s, discussions between Jim Henson Productions and The Walt Disney Company prompted Orton and colleagues to seek independence for the distribution arm. Henson approved a management buyout led by Orton, completed in October 1989. The company was renamed HIT Communications plc and began assembling a catalogue from third-party rights holders rather than relying on Henson's programs. Its early activities included international distribution for Postman Pat and Alvin and the Chipmunks. Beginning in 1991, HIT combined distribution with co-production and financing. It supported Where's Wally? and Captain Zed and the Zee Zone and helped finance animated features based on classic children's literature. Flextech acquired a minority stake that helped fund the business. HIT also operated a wildlife division, which became an important revenue contributor during the mid-1990s. After the success of Barney, the company moved more decisively into original children's programming and established HIT Video for United Kingdom direct-to-video releases. HIT's strongest period of organic brand development began with Bob the Builder. In 1996, the company accepted Keith Chapman's concept and acquired rights to develop it as a television property. The series was broadcast by the BBC from 1999 and became a major international preschool franchise. During the same period, HIT developed or distributed Kipper, Brambly Hedge, Percy the Park Keeper, Angelina Ballerina, and other properties. It formed HOT Animation in 1998, established a consumer-products division, and expanded its North American presence through an American subsidiary and broadcast agreements. The company then pursued acquisitions to obtain recognizable characters and regional infrastructure. It acquired Lyrick Studios, bringing Barney & Friends and a stronger American marketing and distribution network. It also acquired Pingu BV and Gullane Entertainment. Gullane's catalogue included Thomas & Friends, Fireman Sam, and Magic Adventures of Mumfie. The Gullane transaction made Thomas & Friends one of the central assets in HIT's portfolio, while the company later obtained full ownership of Fireman Sam after acquiring S4C's stake. From 2004 onward, HIT broadened its partnerships. It signed a global production and distribution agreement with The Jim Henson Company, participated in the creation of PBS Kids Sprout with Comcast, PBS, and Sesame Workshop, and established relationships with Aardman Animations and Chapman Entertainment. It also created The Little Big Club, which brought several characters into live events at shopping malls and selected resorts. The company experimented with new media and theatrical opportunities through HIT Movies, while continuing to manage television, home entertainment, and licensing rights. Apax Partners acquired HIT in March 2005, taking the company private. During Apax ownership, HIT divested several properties, including its wildlife business, Guinness World Records, Magic Adventures of Mumfie, and Sooty. Jeffrey D. Dunn became chief executive in 2008 and focused on building new characters and refreshing established franchises. Mike the Knight was among the new properties developed during this period. HIT also entered agreements concerning Little Fables, Monkey See, Monkey Do, Clay Play, and other projects, although not every proposed production reached series completion. Apax began a sale process in 2011. Mattel agreed to purchase HIT for $680 million, excluding its PBS Kids Sprout interest, and completed the transaction on 1 February 2012. Mattel managed HIT through Fisher-Price and ultimately integrated the company into Mattel Creations on 31 March 2016. HIT therefore no longer exists as an independent operating company, but its major franchises and library remain associated with Mattel.

• 2016

  HIT absorbed into Mattel Creations

  [1]HIT Entertainmenten.wikipedia.org

  Mattel integrated the company into its Mattel Creations division on 31 March.

• 2012

  Mattel acquisition completed

  [1]HIT Entertainmenten.wikipedia.org

  Mattel completed its purchase of HIT Entertainment on 1 February.

• 2005

  Apax Partners takes HIT private

  [1]HIT Entertainmenten.wikipedia.org

  Apax Partners acquired HIT in a transaction valued at approximately £489.4 million.

• 2002

  Gullane Entertainment acquired

  [1]HIT Entertainmenten.wikipedia.org

  The transaction added Thomas & Friends, Fireman Sam, and other properties.

• 2001

  Lyrick Studios acquired

  [1]HIT Entertainmenten.wikipedia.org

  The acquisition strengthened HIT's United States distribution and added Barney & Friends to its portfolio.

• 1998

  HOT Animation and consumer-products operations formed

  [1]HIT Entertainmenten.wikipedia.org

  HIT established an animation production company and a consumer-products division.

• 1996

  Bob the Builder rights acquired

  [1]HIT Entertainmenten.wikipedia.org

  HIT acquired development rights to Keith Chapman's Bob the Builder concept.

• 1989

  Management buyout creates independent HIT

  [1]HIT Entertainmenten.wikipedia.org

  Peter Orton led a management buyout and re-incorporated the business as HIT Communications plc.

• 1982

  Henson International Television established

  [1]HIT Entertainmenten.wikipedia.org

  Jim Henson, Peter Orton, and Sophie Turner Laing established the international distribution arm of Jim Henson Productions.

A global children's entertainment company built around durable preschool characters, combining content production and acquisition with international distribution, licensing, merchandising, home entertainment, and live experiences.

• Preschool television and character franchise

  Thomas & Friends

  The railway-character franchise became HIT's most strategically important property after the Gullane Entertainment acquisition. It supported television programming, home entertainment, publishing, licensing, toys, and live experiences, and was a principal reason for Mattel's eventual acquisition of HIT.

• Animated preschool television franchise · 1999

  Bob the Builder

  Created from Keith Chapman's concept, Bob the Builder follows a construction worker and his talking equipment. HIT developed the property into a television and merchandising franchise after acquiring its development rights in 1996. The series debuted on the BBC in 1999 and later received major international distribution.

• Preschool television franchise

  Barney & Friends

  Barney & Friends entered HIT's portfolio through the acquisition of Lyrick Studios. The property gave HIT a substantial American distribution and marketing platform and helped the company expand its international licensing and home-video operations.

• Animated preschool television franchise

  Fireman Sam

  Fireman Sam was part of the Gullane catalogue and became fully owned by HIT after the company acquired S4C's 50 percent stake in 2007. S4C continued as an executive producer for subsequent seasons and retained Welsh-language rights.

• Animated preschool television franchise

  Pingu

  HIT acquired Pingu BV in 2001, adding the stop-motion penguin character to its international children's portfolio. The property complemented HIT's focus on globally adaptable preschool characters and supported distribution and licensing activity.

• Animated preschool television franchise · 2011

  Mike the Knight

  Mike the Knight was developed during Jeffrey D. Dunn's tenure as part of HIT's effort to create new characters alongside its established catalogue. The series was co-produced with Nelvana and broadcast on Treehouse TV and CBeebies.

• The Little Big Club

  United Kingdom · International resort and retail markets

  HIT created a live-entertainment initiative bringing characters from its portfolio to shopping malls and children's zones at selected Hard Rock Hotels in Mexico and the Dominican Republic.

  Outcome. The initiative extended HIT's character brands beyond television and home video into experiential family entertainment.

  Source

• 2012

  Mattel acquisitionM&A

  Background

  Apax Partners put HIT up for sale, and Mattel identified Thomas & Friends as a particularly valuable strategic asset.

  Action taken

  Mattel agreed to acquire HIT, excluding its interest in PBS Kids Sprout, and completed the transaction on 1 February 2012.

  Aftermath

  HIT became a Mattel subsidiary managed initially through Fisher-Price. The independent company was later absorbed into Mattel Creations.

  Acquisition value. $680 million (Agreement announced 2011; transaction completed 2012)

  Source

• 2005

  Apax Partners acquisitionM&A

  Background

  HIT required private ownership and investment support for continued international expansion and portfolio management.

  Action taken

  Apax Partners purchased HIT and took it private.

  Aftermath

  HIT operated as an Apax-owned company until its sale to Mattel.

  Acquisition value. Approximately £489.4 million (2005)

  Source

• 2002

  Acquire Gullane EntertainmentM&A

  Background

  HIT wanted to expand its portfolio with established international children's characters.

  Action taken

  HIT agreed to purchase Gullane Entertainment, whose properties included Thomas & Friends and Fireman Sam.

  Aftermath

  The transaction made Thomas & Friends a core HIT asset and significantly increased the company's franchise scale.

  Acquisition value. £139 million (2002)

  Source

• 2001

  Acquire Lyrick StudiosM&A

  Background

  HIT sought stronger access to the United States market and a broader marketing and distribution infrastructure.

  Action taken

  HIT acquired Lyrick Studios, owner of Barney & Friends and distributor of other children's properties.

  Aftermath

  The acquisition expanded Barney's international reach and strengthened HIT's North American operations.

  Acquisition value. Approximately $275 million (2001)

  Source

• 1989

  Separate the distribution arm from Jim Henson ProductionsStrategy

  Background

  The prospect of a sale or combination involving Jim Henson Productions and The Walt Disney Company created uncertainty for the international distribution business.

  Action taken

  Peter Orton and other managers secured approval for a management buyout and established HIT as an independent company.

  Aftermath

  HIT lost access to the Henson catalogue but gained the ability to acquire and develop third-party children's properties.

  Source

1. 1HIT Entertainmenten.wikipedia.org