Asmodee Group and Dark Horse Comics parent Embracer Group has announced plans to spin off Asmodee into a separate publicly traded company, and split the remaining assets into two companies.  The split into three new companies will be accomplished by distributing shares of tabletop game distributor and publisher Asmodee Group and new company Coffee Stain & Friends to Embracer Group shareholders, and renaming Embracer Group as Middle-earth Enterprises & Friends.

“The three entities will be separate, publicly listed companies, enabling each entity to better focus on their respective core strategies and offer more differentiated and distinct equity stories for existing and new shareholders,” the company said in the statement announcing the plan.

Dark Horse will remain in the renamed Middle-earth Enterprises & Friends, which will be focused on AAA game development and publishing for PC and console, and hold and manage The Lord of the Rings and Tomb Raider intellectual properties, among many others.

Coffee Stain & Friends will have a dual focus on indie and A/AA premium and free-to-play games for PC/console and mobile, with a high degree of recurring revenues.

Asmodee’s collaboration around Middle-earth and other Embracer Group IPs will continue after the spinoff. In support of the spinoff, Asmodee has obtained €900 million (around $963 million) in financing, secured only against its assets, which we interpret as spinning off debt incurred for the acquisition of the company.

Asmodee’s management structure will also be changed after the spin-off, with CEO Stephane Carville  and COO and founder Marc Nunes headed to active roles on the Asmodee Board of Directors.  Longtime Asmodee executive and current deputy COO Thomas Koegler will take over as CEO.

A new ownership structure will be formed.  Lars Wingefors AB is currently the largest shareholder with around 20% of capital and 40% of votes, and will “remain a long-term, active, committed and supportive owner of all three entities.”