Zinc Media Group Acquires Raw Cut

Zinc Media Group is pleased to announce the acquisition of Raw Cut Ventures Ltd, which includes Raw Cut Television, Raw Cut Distribution, and Tomas TV. This acquisition supports Zinc’s strategy to accelerate growth and strengthen its capabilities to deliver world-class factual content across broadcasters, streaming platforms, and digital channels globally.

The acquisition has been agreed for an initial consideration of £1.0 million, to be satisfied by the issue of 1,541,622 new ordinary shares, with these shares expected to commence trading on AIM on 4 November 2024. The new shares will rank pari passu with the existing shares. Up to an additional £5.5 million of contingent consideration may be payable if Raw Cut meets specific EBITDA growth targets over the next two fiscal years.

Strategic Fit and Expanded Reach
Founded in 2002, Raw Cut is the UK’s market leader in ‘Blue Light’ programming, producing successful returning series such as Road Wars and Police Interceptors. Their portfolio also includes critically acclaimed True Crime, History, and Feature Documentaries, with longstanding partnerships with major broadcasters including Netflix, Sky, ITV, and Channel 4. Raw Cut’s expertise in delivering high-quality, trusted content aligns seamlessly with Zinc’s values and vision for factual programming.

With production centres in London and Cardiff, Raw Cut expands Zinc’s footprint into Wales, complementing Zinc’s existing operations across UK nations, including Scotland and Northern Ireland. This strengthened regional presence enhances Zinc’s ability to produce diverse and impactful stories from across the UK and respond to market demand for out of London programming.

Financial and Operational Highlights
In the financial year ending 31 December 2023, Raw Cut reported £4.4 million in revenue and a profit before tax of £0.4 million. For 2024, the company is expected to deliver £4.6 million in revenue and £0.5 million in profit before tax. With this acquisition, Zinc anticipates increased IP and distribution capabilities, supported by Raw Cut’s international distribution division in London.

Lock-in Agreements
As part of the acquisition, shareholders Mr Stephen Warr and Mrs Sandra Warr have entered into lock-in agreements with Zinc. Mr Warr has committed to retain his shares for twelve months post-Admission, while Mrs Warr, who will retire upon completion, will retain hers for six months, with further restrictions for an additional six months.

Commenting on the Acquisition, Mark Browning, CEO of Zinc Media Group, said:
‘We are thrilled to welcome Raw Cut into the Zinc Media Group. Their expertise in high-quality ‘Blue Light’ and documentary programming aligns perfectly with our vision for world-class factual content. This acquisition not only strengthens our production capabilities but also solidifies our presence across the UK, and enhances our IP and distribution potential” This acquisition marks a significant step in Zinc’s ongoing M&A strategy, reinforcing its position as a leading factual production company and creating new client opportunities across multiple platforms worldwide.