Benzinga | Sep 1, 2021 09:04AM EDT

Hudson Pacific Properties Reports Separate Acquisitions Of Star Waggons, Zio Studio Services For $222M

Hudson Pacific Properties, Inc. (NYSE:HPP) today announced the separate acquisitions of Star Waggons and Zio Studio Services, two industry-leading companies that provide transportation and logistics services to studio productions, for a combined $222 million. Star Waggons and Zio Studio Services collectively comprise a fleet of more than 1,100 luxury location trailers, specialized vehicles and other transportation assets, as well as complementary equipment for the entertainment production industry. The two transactions, which will be immediately accretive to 2021 and long-term financial targets, significantly expand production services as part of Hudson Pacific's global studio platform.

"Bringing Star Waggons and Zio Studio Services together under the same umbrella with our Sunset Studios business enables us to capture a greater share of production services revenue at our facilities as well as other studios and on location," said Jeff Stotland, head of global studios for Hudson Pacific. "A broader offering of high-quality production services both streamlines content creation for and deepens our relationships with existing Sunset Studios clientele, while providing access to new customers as well. These acquisitions perfectly align with our global studios strategy to accelerate growth, increase profitability and ultimately expand our role within the content production ecosystem--all while delivering excellent returns for our investors."

Founded in 1977 by Lyle Waggoner, the iconic Star Waggons brand is known for providing luxury- and multi-cast trailers, high-quality makeup, wardrobe, production and other specialized trailers, and exceptional service to discerning talent and production clients that include feature films, episodic productions, commercials, festivals and special events. Star Waggons has a fleet of more than 650 trailers with operations in Los Angeles, Albuquerque, Atlanta and Vancouver. Jason Waggoner, President of Star Waggons, will continue to lead the business and Beau Waggoner will remain at the company as an adviser.

Jason Waggoner said: "Our unwavering commitment to client service and satisfaction is what has made us so successful over our 40-year history. I am thrilled to know that as we enter this next chapter of growth as part of the Hudson Pacific family of companies, we have a partner whose culture and way of doing business aligns with that vision and strategy."

Zio Studio Services is an innovative platform which for nearly 15 years has offered one-stop transportation solutions and vehicle rental services to content producers. It services more than 70% of all major studio productions in Southern California, simplifying production rental process and delivering significant time savings for its customers. Its fleet, which operates in Los Angeles and Atlanta, includes approximately 750 transportation and equipment assets including cast, makeup and wardrobe trailers, specialized transportation vehicles, portable power generators and tow plants, as well as sanitation systems and other equipment that are instrumental to keeping production sites safe and hygienic.

Louis Dargenzio, President of Zio Studio Services, who will continue to lead the business said: "Hudson Pacific's vision to bring Star Waggons and Zio Studios Services together alongside its Sunset Studios platform will be a huge win for the entertainment industry at large, our team members and our clients. With Hudson Pacific's resources, production expertise and ambitious plans to expand Sunset Studios, we have incredibly exciting opportunities for growth ahead of us."

American Discovery Capital acted as financial adviser to Hudson Pacific and Latham & Watkins served as the company's legal adviser. Intrepid Investment Bank acted as financial adviser to Star Waggons and Sheppard Mullin acted as its legal adviser. FocalPoint Partners acted as financial adviser to Zio Studio Services and Proskauer acted as its legal adviser. A press release with additional financial details and updated guidance can be found in the investors section of HudsonPacificProperties.com.