Posts Tagged ‘HLD’

More Broadcast Vendor M&A: Screen Service Targeted in €30.5m Takeover Bid

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Oct 22 2012

Italian broadcast transmitter vendor Screen Service became the target of a €30.5m takeover bid launched by Monte Bianco, according to a filing with the Milan Stock Exchange.

The bid values Screen Service, which for the first half of its financial year posted a loss of €3.67 on revenue of €25.1m, at a 35% premium over its previous stock price.

Monte Bianco, which is backed by French PE firm HLD, said it had not previously discussed the proposed deal with any of the shareholders of Screen Service, including Opera who own about 30% of the company.

Monte Bianco, who currently has an holds about 1.2% of Screen Service’s shares, said the proposed deal will increase the competitiveness of Screen Service, and ensure its medium and long term growth.

Screen Service is based in Brescia, Italy also has operations in the US and Brazil.  In July 2012, the company paid €1.1m to up its stake in its Brazilian subsidiary to 75% from 60%.

This is the second PE-backed deal for a broadcast transmitter in the last two years.  In April 2011, Technicolor announced that it had sold the Grass Valley transmission business to PARTER Capital Group for a “non-material” amount.  At that time Technicolor said that the Grass Valley transmission business has 291 employees and posted a loss in 2009 of revenues of approximately €43m.

The Harris broadcast communications division (BCD), which supplies broadcast transmitters along with a wide variety of other products, is currently being divested by its parent company, Harris Corporation.  It is believed that Harris BCD posted revenue of approximately $500m in its last fiscal year, but transmitter revenues were not broken out.

Although many in the broadcast industry may perceive transmitter as “old technology,” Harris BCD president Harris Morris said at the IBC 2012 exhibition that the company’s transmitter business are the “tip of the spear” into high growth emerging markets.  According to Morris, when countries in emerging markets make the transition to digital broadcasting one of the first things they buy is a transmitter, so  Harris BCD is able to sell through its additional elements of its product line on the back of these deals.

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Related Content:

Reuters Article: French group launches bid for Italy’s Screen Service

More Broadcast Vendor M&A: Technicolor Closes Deal to Dispose of Grass Valley Transmission Business

Analyzing the Sale of the Harris Broadcast Division

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