Real estate giant and studio operator Hudson Pacific is making another splashy Hollywood acquisition, unveiling a $360 million deal to buy Quixote Studios, a leading production services and stage supplies rental firm with a large presence in Los Angeles.
Mikel Elliott, who founded Quixote in 1995, will stay on after the acquisition by Los Angeles-based Hudson Pacific, led by CEO Victor Coleman. Hudson said it financed the deal by borrowing $200 million from its credit facility, with an additional $160 million plus interest due in Dec. 2023.
Across its soundstage, production supplies and transportation businesses, Quixote operates 23 leased stages in Los Angeles as well as 425 trailers and motor homes and 70 studio trucks. Recent studio clients have included Apple TV+’s The Morning Show, Paramount’s Yellowstone, Disney’s Jungle Cruise and HBO’s Insecure, as listed in a presentation on the deal.
The buy is the latest big purchase for Hudson Pacific, owner of Sunset Bronson Studios, a Hollywood stage that Netflix currently leases, among its 63 current purpose-built stages. In September of last year, Hudson Pacific acquired Star Waggons and Zio Studio Services in a $222 million deal to bulk up its studio services offering.
Hudson Pacific’s pitch to investors is that the deal will offer scale and synergy opportunities. “Combined 89 stages globally drives ability to capture unmet demand for Sunset Studios by increasing stage capacity,” disclosed Hudson Pacific in its presentation. Another deal point read: “Creates a one-call solution for clients capturing greater production budget share with addition of production supplies, owned grip and lighting business and augmented transportation business.”
“Quixote strengthens our reach to capture strong secular demand for studio and related assets, including excess demand at our Sunset Studios locations, and enables us to achieve immediate economies of scale while further diversifying our client base,” stated Hudson Pacific’s executive vice president of global studios and services Jeff Stotland.