Silver Lake has signed an agreement to acquire Cast & Crew Entertainment Services, a provider of payroll and production accounting services to the entertainment industry, from ZM Capital (ZMC) and other investors. Cast & Crew’s senior management will remain in their current roles and continue as equity partners under the new ownership structure.
Cast & Crew Entertainment Services is a provider of payroll and other business process outsourcing services to the film, television, live entertainment and commercial production markets in North America. Production companies use the company’s services to manage payroll processing and related regulatory filings; production accounting software; workers’ compensation insurance coverage and claims administration; residuals processing; procurement and purchasing services; labor relations; and production incentives guidance and reporting. Cast & Crew is headquartered in Burbank, CA and has field operations in New York, Albuquerque, Atlanta, Baton Rouge, New Orleans, Detroit, Philadelphia and Wilmington. Canadian offices are located in Toronto and Vancouver. The company was founded in 1976 (www.castandcrew.com).
A ZMC-led consortium, including Veronis Suhler Stevenson, Emigrant Capital and other ZMC limited partners acquired the company in 2012. During the two-and-a-half year term of ownership, Cast & Crew achieved significant growth. ZMC and management develop strategies to increase revenues with existing clients, develop new clients, expand into new geographies, and develop and launch new products (such as Cast & Crew Financial Services and Cast & Crew Open Health). ZMC and management also began a set of initiatives to reduce costs and improve customer satisfaction metrics. These initiatives were coupled with a large investment in Cast & Crew’s technology platform.
“We take great satisfaction in Cast & Crew’s dynamic growth in recent years, driven by an outstanding management team and a talented group of employees. We feel fortunate that we had the opportunity to work with the company during this phase of its growth and remain excited about Cast & Crew’s future prospects,” said ZMC Partner Jordan Turkewitz.
ZMC invests in media companies in which the partnership’s capital resources, industry relationships and operational experience can enhance growth and value. The firm is based in New York (www.zelnickmedia.com).
“Silver Lake’s technology expertise and entertainment industry understanding position them as the ideal strategic partner for our company,” said Eric Belcher, President and CEO of Cast & Crew. “We undoubtedly will benefit from Silver Lake’s involvement as we accelerate our investment in technology and as we bring new client-centric digital solutions to market.”
Silver Lake invests in technology and technology-enabled industries. The firm has over 100 investment professionals located in New York, Menlo Park, San Francisco, London, Hong Kong, and Tokyo and has $26 billion in assets under management and committed capital (www.silverlake.com).
“We admire what Cast & Crew’s excellent management team has achieved already with ZMC’s support,” said Silver Lake Managing Director Joe Osnoss. “Technology’s impact on the global media and entertainment sectors will create many new opportunities for Cast & Crew and its clients in the years ahead, and we look forward to helping the company achieve its next phase of growth.”
RBC Capital Markets, Credit Suisse, Deutsche Bank Securities and Societe Generale are providing debt financing for the transaction. Cast & Crew was advised in this transaction by Moelis & Company, Morgan Stanley & Co. and Sidley Austin. Silver Lake was advised by Kirkland & Ellis.
© 2015 PEPD • Private Equity’s Leading News Magazine • 6-30-15