Technicolor in Grass Valley transmission disposal
December 26, 2010
French technology and media services company Technicolor has received a binding offer from Parter Capital Group, a private equity investment consultancy firm based in Germany, to acquire its transmission business, operating under the Thomson Broadcast brand. The offer values the Transmission business for a non-material amount.
As announced early 2010, a range of former Grass Valley business units have been reorganised in three distinct activities: Broadcast, Transmission and Head-end, and are undergoing a restructuring launched at the end of March 2010. With regard to the Broadcast activity, the sale to Francisco Partners was announced on July 26, 2010.
The transmission activity provides transmission products for terrestrial television and radio. With 291 employees operating in five countries, this activity recorded revenues of about €43 million in 2009. In 2009, before restructuring, the transmission activity accounted for 11 per cent of the total Grass Valley revenues and 26 per cent of the operating loss.
The scope of the offer includes all assets and employees of the Transmission Business. This comprises the entire product portfolio: television and radio transmitter product lines, antennas, and scientific applications, as well as the associated R&D centres and sites worldwide. The offer also comprises sales and customer support organisations around the world, systems activities, and the various management and support functions.
Given the structure of the offer, Technicolor will not receive cash proceeds from this disposal which can be applied to the company’s disposal proceeds notes, maturing December 31, 2010. The transaction is expected to close in the first quarter of 2011.