DNEG Buys Anima Kitchent As Spain Invests $28.8M In Further Canary Island Animation Growth

Spain’s push to build a world-class animation industry has gained a powerful new ally. DNEG has announced its acquisition of Canary Islands-based studio Anima Kitchent, adding fresh momentum to one of Europe’s fastest-growing animation hubs.

The terms of the deal and the size of DNEG’s investment have not been disclosed (we asked, but for the moment, nothing is being made public). However, the transaction is being supported by a €24.9 million ($28.8 million) investment from Spain’s state-backed technology investment vehicle SETT, which aims to expand the studio’s production capacity, accelerate original IP development, and support workforce growth in the rapidly expanding Canary Islands animation sector.

While the Spanish investment is noteworthy, DNEG’s acquisition of the studio appears to be the bigger story. The Oscar-winning company has deep ties to Netflix and other major Hollywood studios, and is known for work on titles including Nimona, The Cat in the Hat, The Garfield Movie, Ron’s Gone Wrong, and Netflix’s upcoming Bad Fairies. DNEG said the investment will be channeled through ReDefine Originals, its animation-focused content division, though the precise structure of the transaction has not been disclosed.

The acquisition also gives DNEG a direct foothold in the Canary Islands, which have emerged as one of Europe’s most attractive production hubs thanks to tax credits of up to 54% on the first €1 million of eligible spend and 45% thereafter, capped at €36 million ($41.8 million) per feature and €18 million ($20.9 million) per TV episode.

Over the past decade, the region has attracted studios from across Europe and North America through a combination of tax incentives, government support, and talent development programs. According to Canary Islands officials, the region’s animation workforce has grown to roughly 2,000 employees, helping transform the islands into a significant European production center.

That growth has been accompanied by a broader shift from small service providers toward larger studios capable of handling major international productions while also developing original intellectual property. Today, the Canary Islands are home to a growing roster of animation and VFX companies serving both European and North American clients.

For DNEG, the deal also represents a deeper move into long-form animation production at a time when the company continues to diversify beyond traditional VFX services. The company has spent years expanding its animation ambitions through ReDefine, its animation and content division, and through ReDefine Originals’ focus on original features and series. Acquiring an established European studio gives DNEG another foothold in a region that has become increasingly attractive to global animation producers.

Anima Kitchent has been one of the standout success stories in Spanish animation, particularly within the Canary Islands. The studio employs more than 170 people and has built a substantial presence in children’s entertainment through productions such as Cleo & Cuquín and other digital-native brands. Regional officials say the expansion supported by DNEG could eventually grow the studio from its current workforce to between 500 and 1,000 employees, underscoring the scale of the Canary Islands’ animation ambitions.