CPP pays $290M for 18% stake in studio Entertainment One

Canada's national pension plan is buying a 17.9 per cent stake in Toronto-based studio Entertainment One for the equivalent of about $290 million.

The Canada Pension Plan Investment Board announced a deal to buy 52.9 million shares ineOnefrom ownerMarwyn Value Investors LP on Wednesday that will see the pension fund spend142 million ($290 million) for a stake in theentertainment company that specializes in the acquisition, production and distribution of film and television content.

Entertainment One has distributedsome of the world's biggest recent film and TV titles including TheWalking Dead, The Hunger Games andtheTwilight movies. The company hasmore than 40,000 film and television titles in its portfolio.

In January 2016, eOne formed a partnership with The Mark Gordon Co. to create an independent studio to finance and produce film, network, cable and digital content.

Mark Gordon is a prolific producer whose TV hits include Grey's Anatomy,Criminal Minds,and Ray Donovan,and whose film productions include Speed,The Day After Tomorrowand Saving Private Ryan.

"We are pleased to have the opportunity to become a significant shareholder in eOne and to work with the company to help it achieve its ambitious growth plans of doubling in size within the next five years," said Scott Lawrence, a managing director with CPP, in a release.

Although founded in Toronto, eOnehas been publicly traded on the London Stock Exchange since 2007.

TheCPPIBinvests funds not needed by the Canada Pension Plan to pay current benefits and had $268.6 billion worth of investments as of June 30.