Handleman Company Acquires Majority Stake in
itsy bitsy Entertainment, Holder of Rights to
Teletubbies and Other Entertainment Properties
PR Newswire - May 18, 1998 07:16
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CEO, Kenn Viselman, to Assume Additional Duties as Chairman of the Board Of
The itsy bitsy Entertainment Company
TROY, Mich., May 18 /PRNewswire/ -- Handleman Company (NYSE: HDL)
today announced that its wholly owned subsidiary North Coast Entertainment and
The itsy bitsy Entertainment Company, an entertainment marketing firm with exclusive
rights to a number of prestigious children's properties, including Teletubbies, Tots TV,
Noddy and Miss Spider, have entered into an agreement for the purchase of shares
of itsy bitsy Entertainment. Following consummation of this agreement, North Coast
now owns a 75% stake in itsy bitsy Entertainment. Under the terms of the deal, itsy
bitsy Entertainment will establish a children's unit with responsibility for the acquisition,
development and marketing of future children's entertainment properties and concepts
for North Coast Entertainment.
Managerial and operating control of itsy bitsy Entertainment will remain with its
current management, which is headed by the company's founder and chief executive
officer, Kenn Viselman, who is retaining a meaningful minority interest in the
company. Mr. Viselman will also take on additional responsibilities as chairman of itsy
bitsy Entertainment's board of directors.
The transaction advances a long-standing relationship among North Coast, its
subsidiary Anchor Bay Entertainment Inc., itsy bitsy Entertainment and Mr. Viselman.
Anchor Bay has worked with The itsy bitsy Entertainment Company and Kenn
Viselman on Tots TV, another series by Ragdoll Productions, the creators of
Teletubbies, and previously while Mr. Viselman was at QFE, by establishing the
video label for Thomas The Tank Engine with Anchor Bay. Anchor Bay continues to
hold the video rights to Thomas the Tank Engine, Tots TV and other successful
properties.
"We are pleased to be broadening our relationship with Kenn Viselman and his team
at itsy bitsy Entertainment and are looking forward to having much greater
involvement in the children's market as a result of this deal," said Stephen Strome,
president and chief executive of Handleman. "Given the extraordinary track record of
Kenn Viselman, we are confident that he and his team are capable of leading
Handleman's efforts to increase its development of properties targeted to the
children's market, particularly the preschool segment."
Stephen Nadelberg, president of North Coast Entertainment said, "In the person of
Kenn Viselman, this transaction brings to North Coast and Handleman one of the top
children's entertainment and licensing executives in the industry and positions us to
take a leading role in this fast growing area of the licensing business."
Prior to founding itsy bitsy Entertainment in 1995, Mr. Viselman was with BAI
(formerly known as Quality Family Entertainment) as head of sales and marketing.
MEXX USA, Inc. and Jerrel, Inc. Mr. Viselman has received several licensing
awards for his accomplishments in managing such children's entertainment properties
as Thomas the Tank Engine & Friends, which under his direction became one of the
world's largest revenue-generating licensed entertainment characters.
"I am looking forward to working with Handleman to take itsy bitsy Entertainment to
the next level of its development and to helping North Coast and other Handleman
units acquire new properties and develop new concepts," said Mr. Viselman. "Clearly
they are committed to playing a major role in the children's entertainment end of the
business, and our partnership with them will allow us to strengthen our position
significantly as we pursue our mutual goals."
"I have put together a core team of 25 professionals who have proven to be
outstanding in their respective areas," continued Viselman. "I am sure that with their
input and the current climate in the area of children's entertainment, The itsy bitsy
Entertainment Company will continue to have a strong impact in this arena."
The itsy bitsy Entertainment Company was launched to offer creators of unique
properties a strong, dedicated merchandising, promotions and marketing partnership.
The company is known for creating Safehaven Entertainment programming and
products that promote positive care giving while enhancing children's lives.
North Coast Entertainment develops, publishes and markets family entertainment and
educational multi-media products through four primary businesses: Anchor Bay
Entertainment, Madacy Entertainment, Sofsource, and Sell-Through Entertainment.
Handleman Company, with annual sales in excess of $1 billion, is the largest supplier
and merchandiser of music, video, books and personal computer software products
sold in North America's leading retail chains. Handleman's 3,600 employees ship
products to approximately 16,600 retail departments from distribution facilities
located in the U.S., Canada, Mexico, Argentina and Brazil.
SOURCE Handleman Company
/CONTACT: Tom Oviatt, Vice President & Treasurer of Handleman Company,
248-362-4400, ext. 891; or Peter Rosenthal, Senior Executive Vice President of
Rubenstein Associates, 212-843-8030, for Handleman Company/ |
