Sale of Just for Laughs | ComediHa! about to win the bet

ComediHa! is in the process of finalizing the purchase of the Just for Laughs Group (JPR), insolvent since last March, we have learned The Press. This transaction, which will have to obtain the approval of the courts, will give the appearance of a monopoly to this group established in Quebec.

According to our information, collected from several sources familiar with the matter, the other finalists who coveted the humor specialist were informed that they were no longer in the running. Details of the agreement must be presented to Judge David R. Collier of the Superior Court of Quebec next Monday. The magistrate supervises the proceedings under the Companies’ Creditors Arrangement Act (LACC).

Joined by The Press On Monday, controller Christian Bourque, of the PwC firm, explained that he could not offer details on the current process.

“With ComediHa!” established in Quebec and JPR in Montreal, we have two major centers of humor which will be grouped together, estimates François Colbert, holder of the Chair of arts management at HEC Montreal. It’s not a monopoly, but it’s going to be hard to miss. »

The current shareholders, Bell (26%), the CH Group (25%) and the American firm Creative Artists Agency (49%), should no longer be in the picture. With a Quebec owner, JPR should be able to continue to benefit from tax credits from the Quebec government – ​​a valuable tax tool.

A watchful eye

Furthermore, through the Cultural Enterprise Development Corporation (SODEC), the Quebec government is keeping a close eye on the file. Quebec has a three-year agreement with JPR which expires at the end of 2025 and which provides for the payment of an annual sum of 1 million to help hold its festival. We are awaiting the intentions of the new owner.

As the agreement arises from a standardized program, government criteria must be respected for the money to be paid. SODEC (2.5 million) ranks second among JPR’s secured creditors. The organization could be called upon to continue the activities of the new organization.

The Legault government does not plan any special aid for ComediHa! as part of the purchase of JPR. If new projects are submitted to it, it could help by turning to the Economic Development Fund or that intended for the influence of the metropolis – usual tools.

A block

It was not possible to know the price offered by ComediHa! – which counts Quebecor as a minority shareholder – to overpower its rivals. JPR should not be dismantled. Mr. Bourque has already indicated that the suitors wanted to acquire the fallen comedy giant in one block.

Thus, brands, festivals, tours, as well as everything related to television production, will find themselves in the hands of ComediHa!. The group will also obtain the catalogs of JPR, where we find the popular show The gagsbroadcast in more than 50 countries.

PwC had invited five groups to submit a bid for JPR.

ComediHa!, the tandem formed by Cirque du Soleil and KOTV and the Entourage Group were the Quebec options. There were also two Toronto players specializing in television and film production: New Metric Media and Vortex Media. The Press was able to confirm their identity.

Several sectors of activity of ComediHa!, specialized in the production of shows and programs, artist management and distribution, overlap those of JPR. On May 8, the Quebec company announced the holding of a summer comedy festival in Montreal from July 18 to 28 while the JPR sales process was still in full swing. In Quebec, she already produces a comedy festival, ComediHa! Fest-Quebec.

“ [ComediHa!] is probably the company that has the most chemistry with JPR, estimates François Brouard, full professor at Carleton University and member of the Comedy Industry Research Group. For me, he’s probably the most natural buyer. »

Will the group be in a monopoly position in the Quebec humor industry? Mr. Brouard is less categorical than Mr. Colbert.

“Yes and no,” he said. About ten years ago, major comedy festivals were a must for artists. Now it’s less linear. If we think of comedians like Arnaud Soly or Pierre-Yves Roy-Desmarais, they did not follow this path. »

Questions

Once the transaction is concluded, ComediHa! will have to decide the fate of JPR employees. By protecting itself from its creditors, on March 6, the company laid off 70 employees – approximately 75% of its workforce. It remains to be seen whether they will want to stay on board the new group.

When it protected itself from its creditors, the Just for Laughs Group had debts of around 50 million. The fall of the humor specialist could cost its founder, Gilbert Rozon, up to 17 million. This is the balance of the sale price that occurred in 2018, an amount considered to be an unsecured debt.

The businessman turned to the courts in hopes of getting paid.