GKIDS Acquired by Japan’s Toho International

Animation distributor GKIDS has been acquired by Japan’s Toho.

GKIDS will become a wholly-owned subsidiary of the Los Angeles-based Toho International. Founder Eric Beckman will remain as CEO of GKIDS, and Dave Jesteadt will remain as president.

Beckman and Jesteadt have run the company since 2009, when they released “The Secret of Kells.” Since then, they have grown GKIDS and amassed over 13 best animated feature nominations at the Academy Awards, including this year’s winner, Hayao Miyazaki’s “The Boy and the Heron.”

Toho President and CEO Hiro Matsuoka said, “Through their hard work, vision, and integrity, GKIDS has built a unique position in the U.S. market, which dovetails perfectly with Toho’s own strengths and strategic mission. This partnership accelerates Toho’s goals to prioritize animation, develop international markets, and support IP creation, while bringing exceptional Japanese and animated content to global audiences. We are honored to be working together with Eric, Dave and the entire GKIDS team and welcoming them into the Toho family.”

Toho’s acquisition of GKIDS serves to further accelerate the company’s plans for growth and expansion outside of Japan. Part of that expansion includes a vision to connect Japanese and international productions, creators, and studios with creators and fans overseas.  

Toho acquired Japanese animation studio Science SARU, the company behind “Scott Pilgrim Takes Off”  and also made an equity investment in Los Angeles-based production and distribution company Fifth Season (“Severance”).  

In acquiring GKIDS, Toho adds an established and highly regarded North American theatrical and home entertainment distribution, marketing, and sales operation to complement the licensing, merchandising, and e-commerce operations of its Toho International banner. In turn, GKIDS will be able to tap the synergies and capabilities of the larger Toho parent group, while maintaining its distinct brand, organization, and management team

Beckman and Jesteadt said, “For all GKIDS’ filmmakers, content partners, distribution partners, and especially the fans, this is truly great news. GKIDS will continue to operate as we always have – with the same team, the same passion, and the same mission – but now with the backing of a highly complementary and legendary parent company. We are truly thrilled to be joining forces with the esteemed and storied Toho, home to ‘Godzilla ‘and Akira Kurosawa, as well as blockbuster anime franchises like ‘My Hero Academia’ and ‘Jujutsu Kaisen.’ This partnership will empower us to bring even more amazing films to North American and global audiences, while we continue to champion animation as a cinematic artform and push the limits of what the medium is capable of. We could not be more excited about the opportunities in front of us. The best is yet to come.”

Nomura Securities Co., Ltd. acted as exclusive financial advisor to Toho, and Nishimura & Asahi (Gaikokuho Kyodo Jigyo) acting as legal advisor. ACF Investment Bank acted as exclusive financial advisor to GKIDS, with Sheppard Mullin Richter & Hampton LLP acting as legal advisor.