Screenvision Signs Purchase Agreement with Shamrock Capital Growth Fund
New York, NY – (Sept. 27, 2010)
Screenvision, a leading innovator in cinema advertising, and Shamrock Capital Growth Fund II, a leading private equity fund focused solely on media, entertainment and communications investing, announced today the signing of a definitive purchase agreement with UK-based ITV Plc (LSE:ITV) and Technicolor (Euronext Paris: 18453; NYSE: TCH) for a majority stake in Screenvision.
“We have known and have followed the Screenvision story for many years and have always been impressed with its expansive network of over 150 theatrical partners and inventive advertising solutions it offers to its over 4,000 advertising partners,” said Stephen Royer, Managing Director of Shamrock. “Screenvision is a compelling advertising buy given its captive audience reach, over 15,000 screens throughout the U.S., and its expansive sales offerings. We are thrilled to be partnering with the current management of Screenvision to build from here.”
As part of the transaction, current owner ITV will sell the entirety of its 50% stake to Shamrock while the other owner, Technicolor, will retain a minority shareholding and will continue to be Screenvision’s provider of film and digital services, with the film processing and distribution agreement extending through end of life.
“We have been an owner of Screenvision for over ten years and have built this company into what it is today – a leading advertising provider to the cinema industry,” said Frederic Rose, Chief Executive Officer of Technicolor. “From a commercial perspective, it made sense for us to keep a minority shareholding and to continue our partnership by providing film and digital services to Screenvision.”
“We have always maintained our view that Screenvision is a strong business with great potential, but as we publicly stated, Screenvision was a non-core holdings of ITV and therefore, we are certain it is in great hands with its new owners,” stated Adam Crozier, ITV’s Group Chief Executive.
Additionally, as part of the transaction, Screenvision has entered into an amended exhibitor agreement with Carmike Cinemas, Inc (NASDAQ: CKEC), one of the largest motion picture exhibitors in the U.S. Carmike will also become a minority shareholder in Screenvision as part of its exclusive agreement with Screenvision.
“We have been a partner of Screenvision for over twenty years and we plan to be a partner for many more,” said David Passman, Chief Executive Office of Carmike. “Screenvision has proven to us that it is the preferred solution to partner with because of its independent approach to the cinema industry as well as the creative advertising solutions offered by its excellent sales-force.”
“Carmike is a technological innovator in the exhibition community and our partnership has only become stronger with this agreement,” said Darryl Schaffer, Executive Vice President – Exhibitor Relations at Screenvision. “This partnership validates Screenvision’s ability to support its exhibitor partners with leading-edge cinema advertising solutions.”
The transaction is pending regulatory approval.
Headquartered in New York, N.Y., Screenvision is a national leader in cinema advertising, offering on-screen advertising, in-lobby promotions and integrated marketing programs to national, regional and local advertisers and providing comprehensive cinema advertising representation services for its theatrical exhibitor partners. The Screenvision cinema advertising network is comprised of over 15,000 screens in 2,500 theatre locations across all 50 states and 93% of DMAs nationwide; delivering through more than 150 theatrical circuits, including 10 of the top 15 exhibitor companies. For more information: www.screenvision.com
Historically known as the Disney-family investment vehicle for over thirty years, Shamrock is a Los Angeles-based private equity firm investing on behalf of a diversified group of institutional limited partners focused solely on the media, entertainment, and communications industries. Shamrock makes both control and minority investments. Shamrock’s representative investments include, REALD, MediaStorm, PRN, Harlem Globetrotters, Modern Luxury and Publishing Group of America. www.shamrock.com
With more than 95 years of experience in entertainment innovation, Technicolor serves an international base of entertainment, software, and gaming customers. The company is a leading provider of production, postproduction, and distribution services to content creators and distributors. Technicolor is one of the world’s largest film processors; one of the largest independent manufacturers and distributors of DVDs (including Blu-ray Disc); and a leading global supplier of set-top boxes and gateways. The company also operates an Intellectual Property and Licensing business. For more information: www.technicolor.com
ITV Plc is the UK’s leading advertiser-funded, free-to-air broadcaster and employs circa 4,000 staff worldwide within its Broadcasting, ITV Studios and Online businesses. ITV’s broadcasting business is made up of ITV1, the UK’s largest commercial TV channel in terms of audience share, and the UK’s leading portfolio of digital channels – ITV2, ITV3 and ITV4. Annually ITV invests around £1 billion in content for its broadcast channels and its website itv.com.Itv.com is focused on delivering short- and long-form video content from ITV programming for viewing in real time or catch-up – the ITV Player allows users to access catch-up and watch clips from the best ITV programmes, all supported by advertising. ITV Plc’s content business, ITV Studios creates and produces original programming for content buyers worldwide. With production centres in the UK, USA, Germany, France, Spain, Australia and Scandinavia, recent hit shows and formats include primetime successes Marple, Poirot, Lewis, Hell’s Kitchen, Dancing on Ice, Come Dine with Me and I’m a Celebrity… Get Me Out of Here! The business also generates revenues by distributing ITV and third-party programming internationally, and through the sale of associated DVDs and merchandise.
ABOUT CARMIKE CINEMAS
Carmike Cinemas, Inc. is a U.S. leader in digital cinema and 3-D cinema deployments and one of the nation’s largest motion picture exhibitors. As of June 30, 2010, Carmike had 240 theatres with 2,250 screens in 35 states. Carmike’s digital cinema footprint reached 2,125 screens, including 197 theatres with 544 screens that are also equipped for 3-D. Carmike’s focus for its theatre locations is small to mid-sized communities with populations of fewer than 100,000. www.carmike.com
For more information regarding Screenvision, contact:
Jeffrey Klein – Dan Klores Communications