Technicolor Receives Binding Offer for Grass Valley Transmission Business as Divestment Program Continues

Posted by Joe Zaller
Jan 04 2011

Technicolor, which continues to divest non-core assets, announced that it has received a fully documented binding offer from PARTER Capital Group, a private equity investment consultancy firm based in Germany, for the acquisition of the Transmission business, operating under the Thomson Broadcast brand.

The deal values the transmission business at a “non-material amount,” and Technicolor will not receive any cash as part of the deal. The company said it expects to register a non-cash loss for this disposal in its 2010 financial statements. The transmission business provides products for terrestrial television and radio. It has 291 employees and made a loss in 2009 on revenues of about 43m Euros.

The offer from Parter Capital includes the acquisition of all assets and employees of the transmission business, which comprises the entire product portfolio: television and radio transmitter product lines, antennas, and scientific applications, as well as the associated R&D centers and sites worldwide. The offer also comprises sales and customer support organizations around the world, systems activities, and the various management and support functions.

PARTER Capital Group will also enter a trademark agreement with Technicolor for the use of the Thomson trademark.

Technicolor’s transmission business was previously operated under the Grass Valley name, but was separated out from Grass Valley as a separate division as part of the company’s ongoing restructuring process.  Earlier this week, Technicolor announced that it has completed the sale of its Grass Valley broadcast business to Francisco Partners, another private equity firm.

The transaction is expected to close in the first quarter of 2011, subject to the relevant customary regulatory administrative approvals and consultations.

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You can read the full Technicolor press release about the deal here.

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One Response

  1. World Spinner says:

    Technicolor Receives Binding Offer for Grass Valley Transmission ……

    Here at World Spinner we are debating the same thing……

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