AME Buys 1 Video Firm, Delays Purchase of Other

AME, which sells post-production services to the movie and television industries, said it bought the assets of a videotape-duplicating plant in El Segundo from Bell & Howell/Columbia Paramount Video. The price was not disclosed.

But in a separate announcement, AME said it tabled a previously announced plan to buy a competitor, Manhattan Transfer, and its New York-based parent company, Tape Us.

Gary Costanzo, executive vice president for administration at Burbank-based AME, said the decision to defer the purchase--whose price also was not disclosed--was agreed to by AME and privately held Tape Us.

Before completing the deal, AME wanted to review Tape Us’ audited financial results for its fiscal year ended Jan. 31, Costanzo said. But the audit is taking longer than expected and the results will not be available until next month, he said.

In the meantime, Tape Us said it “would like to talk to some other people” about a possible transaction, and both companies agreed they would not be bound by their tentative merger agreement, Costanzo said. But AME is continuing talks with Tape Us about the merger, he added.

Tape Us and Manhattan Transfer are post-production companies that principally serve the New York market. AME, which initially focused on the Hollywood market, has been aggressively expanding in New York recently by acquiring companies based there.