Stick-man cartoon nets creator €7m takeover deal

The creator of stick-man cartoon character Purple Ronnie has bagged a deal worth up to £4.8m (€7m) after selling the rights to the brand.

Giles Andreae will net £3.3m (€4.8m) and up to a further £1.5m (€2.2m) dependent on performance over two years under the sale, which sees AIM-listed group Coolabi pick up Purple Ronnie parent group Purple Enterprises in a reverse takeover.

Coolabi will acquire the rights not only to the character, but also the rights to Mr Andreae’s children’s book titles including Rumble in the Jungle, Commotion in the Ocean and Giraffes Can’t Dance.

The deal could see Purple Ronnie target America, with Mr Andreae working with the group to explore opportunities in the US as part of a two-year earn-out.

Purple Ronnie was first created by the Oxford and Eton graduate 20 years ago and has gone on to appear on 44 million greeting cards, in two million books and a range of merchandise including mugs, toiletries, gadgets, sweets, stationery and toys.

The character was also once part of an advertising campaign for soft drink Vimto.

Greeting card firm Hallmark signed a five-year contract to license Purple Ronnie last September and is set to test the brand in the US, with results of the pilot due by the end of the year.

Coolabi also aims to expand the brand to new media.

Jeremy Banks, chief executive of Coolabi, said: “Our stated objective is to build Coolabi into a successful international intellectual property business.

“The acquisition of Purple Enterprises represents a significant first step towards our objective.”

Coolabi owns or controls the intellectual property rights to children’s cartoons including King Arthur’s Disasters, as well as selected rights to intellectual properties such as the Hammer House of Horror.