Compact Video Sold to Investment Firm
Compact Video Group Inc., a Burbank video post-production firm, has been sold to a New York investment management firm for an undisclosed price.
ATS Acquisition Corp. said it purchased all the assets of Compact Video Group and its Compact Video Services Inc., Image Transform Inc. and Meridian Studios Inc., which will be combined into one operating unit.
ATS is an investment vehicle of Steinhardt Partners, a New York investment group. Last month, Steinhardt Partners lost a bid in bankruptcy court for AME Inc. in Burbank, once Hollywood’s biggest video post-production firm. AME went to yet another Burbank post-production firm, All Post Inc.
Nearly all of Compact’s 309 employees are expected to stay on with ATS but members of the company’s management received salary and benefit reductions, ATS said.
Compact’s revenues have remained at about $50 million annually for the past several years, a spokesman said. But ATS said in a release that the company is operating in “a difficult competitive environment recently worsened by deteriorating revenues and profit margins in our core businesses industrywide.”
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