French film companies and long-time collaborators Goodfellas and Rectangle Productions have finalized a merger, which has been in the works since the summer.

The partners said in a statement on Friday that the deal marked “an important milestone” for both parties and “had been carried out in the interests of all stakeholders”.

The merger follows news over the summer, first reported by French trade paper Le Film Français, that Rectangle Productions, was in financial difficulty and had filed for judicial reorganisation to keep its activities ticking over while it restructured.

Co-founded in 2003 by Édouard Weil and joined in 2012 by Alice Girard, Rectangle Productions has produced 60 films and TV series, including Audrey Diwan’s Golden Lion winner The Happening and her follow-up film Emmanuelle.

The weak performance of the latter film at the French box office has reportedly not helped the company’s financial situation.

Under the deal, Rectangle Productions will retain its brand, creative independence, attached talent and ongoing projects.

“Producers Alice Girard and Edouard Weil will continue to produce ambitious films and TV series in collaboration with their usual talents and partners,” said the statement.

Goodfellas said the partnership would strengthen its film and TV production business and complement its core international sales activity.

“In a constantly evolving environment, this operation ensures the continuity of an entity with its two historical producers and a highly talented team whose tastes and expertise are largely aligned with those of Goodfellas,” added the statement.

“This collaboration will also enable Goodfellas, which is very frequently involved in international projects, to be even more efficient with, internally, an additional, reliable and recognized production entity.”