VFX and animation group, Cinesite, has announced a new long-term funding package of US$215 million to support its “continued operations, technological innovation and strategic expansion.”
Cinesite says the funding package “empowers Cinesite to overcome the challenges posed by recent industry disruption that has affected the entire sector.”
Technicolor Creative Group-owned The Mill and MPC recently shuttered and Jellyfish Pictures suspended operations this week after a difficult time for high-end VFX houses facing headwinds including shutdowns caused by the writers’ and actors’ strikes.
NatWest Corporate Bank led the financing for Cinesite’s package alongside the studio’s long-standing relationship banks Barclays and Santander. Its shareholders, including family office Gryphion, supported the overall package of senior and junior debt and equity lines.
The Cinesite group says that despite difficulties facing the VFX sector, it has “retained as many of its highly skilled artists and technical talent as possible, ensuring its studio network was ready to seamlessly resume production as soon as the strikes concluded. This commitment to talent, while impacting the company’s short-term financials, was crucial to maintaining quality and skilled expertise, allowing the company to continue servicing client projects without further disruption.”
The company says it will now “capitalise on the growing demand for high-quality entertainment content worldwide” while considering strategic acquisitions and partnerships.
“We have served this industry for over 30 years and in that time we have seen many changes; our longevity comes in part from our ability to adapt. In the next phase of our business you can expect to see us taking advantage of opportunities thrown up by the disruption of the past couple of years,” said Cinesite Group CEO Antony Hunt. “Thanks to the renewed commitment of our banks, shareholders and other stakeholders and the ongoing confidence our clients place in our services, we will continue to produce exceptional work for audiences, while fuelling innovation and studio growth.”
“This funding package underscores the conviction of Cinesite’s shareholders and banks in the industry’s recovery and the continued demand for high-quality visual narratives,” said William Ford, Chief Investment Officer at family office Gryphion. “Cinesite’s strategic market position and growth potential, combined with its ability to consistently produce top-tier entertainment during unprecedented times, made renewing our support a straightforward choice. We are confident in Cinesite’s leadership and their ability to thrive as the broader industry restores its equilibrium.”
During its 32+ year history, Cinesite’s VFX spans blockbuster films like the Marvel Cinematic Universe, James Bond, and Harry Potter franchises, as well as acclaimed television series such as “The Witcher”, “The Mandalorian,” and “Band of Brothers.” In animation, the studio has delivered films including “Teenage Mutant Ninja Turtles: Mutant Mayhem” and “The Addams Family” series. Cinesite’s upcoming projects include “Warfare”, “Michael” , “G2O” and a new “Smurfs” film. The studio has moved into animated series with productions like “Iwájú” for Disney+, gaming cinematics such as “Invincible: Guarding the Globe” for Ubisoft as well as pioneering immersive content for clients such as the multi-sensory experience Frameless and The National Portrait Gallery.
Jon Creamer
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