Donny Osmond Firm Goes to Dallas Company in Swap
Custer Co. Inc. of Dallas has acquired 83% of Donny Osmond Entertainment in Santa Ana in return for a chain of 31 rent-to-own appliance and electronics stores in the South.
Custer got 5.1 million shares of a company whose stock is not listed on any exchange but trades sporadically in the over-the-counter market. The Osmond company said that the stock has been selling at about 25 cents.
The Osmond company--which describes its business as producing and distributing films and videotapes--lost $371,000 last year on sales of $1.1 million.
The entertainer is chairman of the company but keeps his performing career separate, the company said.
Custer had operated the stores through a subsidiary, Entertainment Equity, which Osmond Enterprises acquired in the deal. The chain--called Mr. Steve’s--has stores in Texas, Oklahoma, Louisiana and Georgia with sales of $7.6 million last year.
“Donny’s involvement with the store business, at least name-wise, will be minimal,” said William L. Waite, president of the three-employee Osmond company’s entertainment division, which will remain in California.