OMAHA, Nebraska—Oct 15, 2007
Ballantyne Acquires Leading Cinema Screen Manufacturer, Marcel
Desrochers Inc. (MDI)
- Accretive Acquisition Expands Ballantyne's Product Lines and
Leverages its Distribution Reach -
Ballantyne of Omaha, Inc. (Amex:BTN), a motion picture projection, digital cinema and specialty lighting equipment and services provider, today announced that it has completed the purchase of privately-held Marcel Desrochers, Inc.
(MDI), a respected, Canada-based manufacturer of cinema projection screens for $3.4 million in cash, subject to post closing adjustments.
The addition of MDI expands the breadth of Ballantyne's product lines for the cinema exhibition industry and provides a new growth opportunity. The acquisition was funded from cash on hand and is anticipated to be accretive to Ballantyne's earnings. Ballantyne has leased MDI's 50,000 sq. ft. facility in Joliette, Quebec.
With 32 employees, based outside Montreal, MDI is a market-leader in the North American screen manufacturing industry. MDI expects fiscal 2007 revenue to approach Cdn. $4 million. Like Ballantyne, MDI has an excellent reputation for quality products and service, strong customer relationships and boasts an experienced technical staff. MDI continues to invest in new cinema screen technologies and has been very active in providing specialty "silver" screens required for certain 3-D cinema technologies including the Real D 3-D technology.
Benoit Mailloux, acting CEO of MDI commented, "Ballantyne represents the ideal partner for MDI as we share a strong commitment to industry-leading products and customer service. We believe there is substantial synergy between our respective product lines and customer bases that should drive growth for both our businesses as the conversion to digital cinema gains momentum. We expect the exhibition industry will embrace the opportunity to procure projectors and screens from one vendor. Our late founder and Chief Executive Officer, Marcel Desrochers, was a strong supporter of the combination of the two companies and worked actively on developing the structure."
John P. Wilmers, President and Chief Executive Officer of Ballantyne, commented, "The acquisition of MDI is consistent with our strategy to leverage our core business through acquisitions of complementary products and services while maintaining our focus on the digital cinema rollout. With MDI's proven leadership in the North American cinema screen market and its strong relationships with industry leaders like Real D, we are very excited by the potential benefits of this transaction. The goal of our M&A program is to leverage our cash position to expand our slate of industry-leading products and services so that we can best support the needs of our customers and their overall 'auditorium experience.'"