Paris—Jul 31, 2015
Ymagis' Bid to Take Over Eclair Group’ Businesses Accepted By the Nanterre Commercial Court
Ymagis Group (ISIN: FR0011471291, TICKER: MAGIS), the
European specialist in digital technologies for the cinema industry, has
announced that its offer to take over the businesses and certain assets of
Eclair Group was accepted today by the Nanterre Commercial Court as part of the
company's rehabilitation proceedings, which began on 12 June 2015.
Eclair was
founded in 1907 by industrialist Charles Jourjon, who joined the tradition of
the great pioneers of French cinema such as Léon Gaumont and Charles Pathé. The
Group has a very long history as a trustworthy partner for the film industry. Its
name is recognised worldwide for the quality of its services, as well as
several innovations that have marked the motion picture industry, especially
the invention of different type of cameras.
Over the last
few years, Eclair Group has been severely hit by the sharp decline in its
photochemical activities due to the transition of the whole industry from film
print to digital. The group significantly reduced its revenue and workforce, which
considerably affected its financial position. After several years of
restructuring, the Group has refocused on future-oriented activities grounded
in four major areas: localisation businesses (subtitling, dubbing, etc.),
content distribution services, film and video restoration, and postproduction.
Eclair Group's consolidated financial statements show that in 2014 it generated
€37.7m in revenue, almost entirely from the French market, and negative
operating income of €3.5m.
Under the
terms of the offer, Ymagis will purchase Eclair Group's operating activities,
its holdings in several subsidiaries in France, Germany and Morocco, tangible
assets including property and some intangible assets. Ymagis will not take over
any liabilities incurred by Eclair Group before the judgment deciding about the
cession plan.
To manage the
businesses acquired, Ymagis will create two new subsidiaries that will be wholly-owned
by Ymagis SA: Eclair Media SAS taking over the content distribution and
localisation services, and Eclair Cinéma SAS being responsible for
postproduction and restoration.
These
businesses will complement Ymagis Group's existing "Content Services"
division in terms of digital content delivery to movie theatres, opening the group
up to new developments in video businesses (services for TV channels, VOD
platforms, etc.). Ymagis' goal is to develop these activities internationally
once Eclair's restructuring has been completed.
Of the 320
people currently employed by Eclair Group, 233 will join the new structures
Eclair Media SAS and Eclair Cinéma SAS as well as the subsidiaries taken over.
A team of specialists dedicated to managing these activities will be recruited and
will report to Ymagis' management committee.
Ymagis will
pay €670k to acquire these assets, including inventory. Furthermore, Ymagis will
contribute €217k to the redundancy programme for employees not kept on, and
will assume responsibility for €337k in fees owed to specific suppliers in
order to ensure the businesses can continue operating. The total amount of
approximately €1.2m will be fully financed by the company's own equity. The
Group is now in talks with its financial partners to optimise the financing of
its operational cash flow.
The takeover
comes into effect on 1 August 2015. The Eclair Group's earnings will be
consolidated starting from that date.
"We are very pleased that Eclair Group, whose
name is firmly imprinted in the cinema history, has joined our team. This
transaction will create an alliance between tradition and modernity and is part
of our strategy to develop our business portfolio. Eclair will help Ymagis
Group offer new services to content providers, with promising opportunities for
further international expansion", said Jean
Mizrahi, Chairman and Chief Executive Officer of Ymagis. "We will put our expertise, technical knowledge, business skills
and international network to work in rejuvenating the century-old company,
whose name is respected worldwide. The goal is to help Eclair recover its past
glory."
