Technicolor to spin off VFX business
February 25, 2022
By Chris Forrester
Technicolor is set to spin off and list its creative services division which includes its visual effects businesses. The move will mean a sell off of some 65 per cent of Technicolor Creative Studios with Technicolor holding on to 35 per cent.
Technicolor will hold onto its Euronext stock market listing.
The company, in a statement, said: “Evolution into two industry-leading, independent listed companies, each with the ability to pursue its own strategic agenda and unleash value potential.”
The sell-off of MPC (the former Moving Picture Co.), which includes MPC Film, MPC Episodic and MR X subsidiaries and includes The Mill post-production house, and where its portfolio of recent projects includes special effects on titles such as the Lion King remake. Recent output the company includes Ghostbusters: Afterlife, Cruella and West Side Story. Coming up it has Top Gun: Maverick and the live-action remake of The Little Mermaid.
The move is said by CEO Richard Moat to help the company be “more agile and thrive as an independent business”.
Back in 2020 Technicolor went thought a bankruptcy reconstruction.
Technicolor said it has also received a binding offer to sell its Trademark Licensing operations for c.€100 million in cash, subject to closing conditions, with completion expected in H1 2022. This is another step in the direction of further deleveraging and simplification.
A statement from Technicolor said: “The transformation of the Group carried out over the past two years has resulted in us having three profitable businesses which are global leaders in their respective markets. In addition to executing our transformation program, the Board of Directors and management team have continuously evaluated strategic options to unleash the value potential of our divisions. After a comprehensive review, we determined that pursuing the partial spin-off of TCS from the Group along with the full refinancing of the existing debt will be the solution that best aligns strategy, value creation and financial objectives for all of Technicolor’s stakeholders. We are convinced that this operation is a unique opportunity to ensure both TCS and Technicolor Ex-TCS have the adequate capital structure to support their developments, long-term ambitions and organic growth. The execution of these operations will allow both companies to pursue their own strategic agendas, be more agile and ultimately thrive as independent businesses.”