DNEG Acquires Anima Kitchent, Bolstering Canary Islands’ Animation Powerhouse

London, UK & Las Palmas, Spain – June 5, 2026 – In a strategic move set to significantly amplify Europe’s animation landscape, DNEG, the renowned Oscar-winning visual effects and animation studio, has announced the acquisition of Anima Kitchent, a prominent Canary Islands-based animation production house. This acquisition not only injects substantial capital into Anima Kitchent but also underscores DNEG’s commitment to expanding its global footprint and its long-form animation capabilities, particularly within a region rapidly solidifying its status as a premier animation hub.

The financial specifics of the DNEG-Anima Kitchent transaction remain undisclosed. However, the deal is powerfully supported by a substantial €24.9 million (approximately $28.8 million) investment from SETT, Spain’s state-backed technology investment vehicle. This significant injection of public funds is earmarked for the strategic expansion of Anima Kitchent’s production capacity, the acceleration of original intellectual property (IP) development, and the fostering of workforce growth within the burgeoning Canary Islands animation sector.

While the Spanish governmental investment is a crucial component, the acquisition itself by DNEG represents the more transformative element of this announcement. DNEG, a powerhouse with deep-seated relationships with industry giants like Netflix and other major Hollywood studios, brings a wealth of experience and a proven track record of delivering high-caliber animated content. The studio’s impressive portfolio includes critically acclaimed projects such as Netflix’s Nimona, The Cat in the Hat, The Garfield Movie, Ron’s Gone Wrong, and the forthcoming Netflix series Bad Fairies. DNEG has indicated that this investment will be channeled through ReDefine Originals, its dedicated animation-focused content division, although the precise structural integration of Anima Kitchent into DNEG’s operations is yet to be fully detailed.

Canary Islands: A Beacon for Animation Production

The acquisition grants DNEG a direct and strategic presence in the Canary Islands, a location that has swiftly ascended to become one of Europe’s most attractive production destinations. The archipelago’s allure is significantly amplified by its exceptionally competitive tax incentive structure. This includes a remarkable tax credit of up to 54% on the first €1 million of eligible expenditure, followed by a 45% credit on subsequent eligible spend. These incentives are capped at €36 million (approximately $41.8 million) per feature film and €18 million (approximately $20.9 million) per television episode, making it a compelling proposition for international productions.

Over the past decade, the Canary Islands have strategically cultivated an environment conducive to attracting global animation and VFX studios. This success can be attributed to a synergistic combination of robust tax incentives, dedicated governmental support, and proactive talent development programs. According to local officials, the region’s animation workforce has witnessed a remarkable surge, now encompassing approximately 2,000 skilled professionals. This growth has been instrumental in transforming the islands into a significant and influential European production center.

Evolution of the Canary Islands Animation Ecosystem

This period of rapid expansion has coincided with a significant evolution within the region’s industry. The focus has demonstrably shifted from smaller, service-oriented providers towards the establishment of larger studios capable of undertaking ambitious international productions. Simultaneously, these studios are increasingly prioritizing the development of original intellectual property, a crucial step towards building sustainable and globally competitive creative enterprises. Today, the Canary Islands proudly host a growing roster of animation and VFX companies catering to a diverse clientele spanning both European and North American markets.

DNEG’s Strategic Expansion into Long-Form Animation

For DNEG, this acquisition represents a more profound commitment to long-form animation production, a strategic diversification from its traditional VFX services. The company has been systematically building its animation capabilities over several years through its dedicated animation and content division, ReDefine. The focus of ReDefine Originals on developing original features and series has been a cornerstone of this strategy. The integration of an established European studio like Anima Kitchent provides DNEG with an invaluable foothold in a region that has become increasingly appealing to global animation producers seeking both creative talent and a supportive production infrastructure.

Anima Kitchent: A Success Story in Spanish Animation

Anima Kitchent stands as one of the most notable success stories in Spanish animation, with a particular emphasis on its significant contributions from its base in the Canary Islands. The studio currently employs over 170 dedicated professionals and has cultivated a substantial presence in children’s entertainment. This has been achieved through the successful production of beloved series such as Cleo & Cuquín, alongside a portfolio of other digital-native brands that have resonated with young audiences. Regional officials are optimistic that the expansion, fueled by DNEG’s investment, has the potential to more than triple Anima Kitchent’s current workforce, growing from its existing staff of 170 to an impressive range of 500 to 1,000 employees. This ambitious growth trajectory further underscores the scale of the Canary Islands’ overarching animation ambitions and their capacity to support large-scale international projects.

Chronology of Growth and Investment

The ascent of the Canary Islands as an animation powerhouse is a story of strategic foresight and sustained effort. While the exact timeline of DNEG’s engagement with Anima Kitchent is not publicly detailed, the broader context of the region’s development provides valuable insight.

• Early 2010s: The Canary Islands government begins actively promoting the region as a filming and production destination, leveraging its unique landscapes and increasingly attractive incentive packages. Initial efforts focus on attracting live-action productions.
• Mid-2010s: Recognizing the burgeoning global demand for animated content and the transferable skill sets, regional authorities begin to specifically target animation studios. Tax incentives are refined and expanded to specifically benefit animation and VFX work.
• Late 2010s: The growth of the animation workforce becomes more pronounced. Smaller service studios begin to establish a presence, attracted by the financial incentives and a growing pool of local talent. Anima Kitchent emerges as a key player, focusing on children’s content.
• Early 2020s: The Canary Islands solidify their reputation as a European animation hub. Larger international studios begin to explore or establish a presence. Government investment vehicles like SETT are established or strengthened to further support the sector’s growth. DNEG, through its ReDefine division, actively scouts for strategic acquisition and partnership opportunities to bolster its animation ambitions.
• 2026 (Present): DNEG announces the acquisition of Anima Kitchent, backed by significant investment from SETT. This marks a pivotal moment, signaling a new era of accelerated growth and enhanced production capabilities for the Canary Islands and DNEG’s global animation division.

Supporting Data and Regional Impact

The economic and creative impact of this acquisition is poised to be substantial. The Canary Islands’ animation sector has already demonstrated impressive growth, and the integration of DNEG’s expertise and financial backing will likely accelerate this trend.

• Workforce Expansion: The projected growth of Anima Kitchent’s workforce from 170 to 500-1,000 employees represents a significant leap, creating hundreds of new, high-skilled jobs in the region. This aligns with the government’s objective of fostering a robust and sustainable creative economy.
• Production Capacity: Increased production capacity will enable Anima Kitchent, and by extension the Canary Islands, to attract and execute larger, more complex international animation projects, further cementing its position on the global stage.
• IP Development: The focus on original IP development is crucial for long-term industry sustainability. It allows studios to build their own valuable assets, diversify revenue streams, and foster unique creative voices.
• Economic Contribution: The animation sector’s contribution to the Canary Islands’ GDP is expected to rise significantly, driven by increased production expenditure, job creation, and the development of intellectual property.
• Talent Attraction and Retention: The enhanced opportunities and the presence of a global industry leader like DNEG will make the Canary Islands an even more attractive location for animation talent from across Europe and beyond, potentially stemming brain drain and fostering a vibrant creative community.

Official Responses and Industry Perspectives

The announcement has been met with enthusiasm from various stakeholders, highlighting the collaborative efforts that have propelled the Canary Islands to its current standing.

Miguel Ángel González, Director of SETT: "This investment in Anima Kitchent, in partnership with DNEG, is a testament to our unwavering commitment to fostering a world-class animation industry in the Canary Islands. SETT’s strategic infusion of capital will empower Anima Kitchent to expand its operations, drive innovation in original content creation, and significantly contribute to the growth of our skilled workforce. We are confident that this collaboration will elevate the region’s profile as a global leader in animation production."

A spokesperson for the Canary Islands Government: "The Canary Islands have strategically positioned themselves as a premier destination for animation and VFX production. The acquisition of Anima Kitchent by DNEG, supported by SETT’s investment, is a landmark achievement that validates our long-term vision. It signifies not only the growth of individual studios but also the maturation of our entire ecosystem, attracting major international players and creating substantial economic opportunities for our citizens."

DNEG Leadership (Statement): "We are thrilled to welcome Anima Kitchent into the DNEG family. Their exceptional talent, particularly in children’s animation, perfectly complements our existing strengths. This acquisition, bolstered by the strategic investment from SETT, represents a significant step forward in our ambition to be a leading force in long-form animation production. The Canary Islands offer an incredibly supportive environment, and we are excited to contribute to its continued growth as a vibrant animation hub."

Anima Kitchent Leadership (Statement): "Joining forces with DNEG is an incredible opportunity for Anima Kitchent. This partnership, combined with the substantial support from SETT, will allow us to scale our ambitions, develop even more compelling original content, and expand our team significantly. We are proud to be part of the burgeoning animation success story of the Canary Islands and look forward to a bright future of creative collaboration."

Implications for the Global Animation Industry

The DNEG-Anima Kitchent deal carries significant implications for the broader global animation landscape. It signals a continued trend of consolidation and strategic expansion within the industry, as major players seek to secure talent, expand production capacity, and diversify their content offerings.

• Increased Competition and Collaboration: The strengthening of European animation hubs like the Canary Islands will likely foster increased competition but also present greater opportunities for collaboration among studios globally.
• Focus on Original IP: The emphasis on original IP development by DNEG through ReDefine Originals highlights a growing industry trend. Studios are increasingly looking to own and control their intellectual property to maximize long-term value and creative control.
• Geographic Diversification of Production: The success of regions like the Canary Islands demonstrates the viability of diversifying production bases beyond traditional hubs. This can lead to more equitable global distribution of creative opportunities and talent.
• Synergy of Public and Private Investment: The dual investment from DNEG and SETT exemplifies a successful model of public-private partnership in fostering high-growth creative industries. This approach can serve as a blueprint for other regions seeking to build their own animation sectors.
• Talent Development as a Key Differentiator: The continued investment in talent development programs within the Canary Islands is crucial. As the demand for skilled animators grows, regions that can effectively cultivate and retain talent will have a distinct competitive advantage.

In conclusion, the acquisition of Anima Kitchent by DNEG, underpinned by substantial investment from SETT, represents a pivotal moment for both the companies involved and the Canary Islands’ burgeoning animation industry. It signifies a strategic alignment of resources, talent, and ambition, poised to yield a new wave of captivating animated content and further solidify the region’s position as a vital player in the global animation arena. The collaborative spirit and forward-looking vision demonstrated by all parties involved paint a promising picture for the future of animation production in Europe and beyond.