Boutique studio Lions Gate Entertainment Corp. said Thursday that it has agreed to sell its Canadian film distributor Maple Pictures to Alliance Films for about $38.5 million.
Under the terms of the deal, Alliance Films, a Canadian distributor of films and television programming, will acquire Maple and its film library. Films that Maple has released include "The Expendables," "The Hurt Locker" and "Winter's Bone." Alliance also will assume responsibility of exclusive deals that call for Maple to distribute Lions Gate films, television programming and movies in its filmed entertainment library in Canada.
"This deal also allows us to sharpen our focus on our core assets that are critical to our growth trajectory, and it is an important step in the ongoing process of simplifying our business," said Steve Beeks, Lions Gate's president and co-CEO.
The transaction must be approved by Canadian regulatory authorities.
Laurie May and Brad Pelman, who co-founded Maple Pictures in 2005, will be joining Alliance.
Lions Gate shares slipped about 4 cents to $6.59 in aftermarket trading. The shares ended the regular session up 10 cents at $6.63.