Technicolor Video, a Camarillo company owned by British media conglomerate Carlton Communications, is acquiring 50% of Mexico's leading videocassette manufacturer, Central de Video, for as much as $15.5 million.
Central de Video is owned by Grupo Video Visa, Mexico's largest home entertainment company.
The move is part of Technicolor's strategy to expand internationally and service its customers in major regions throughout the world. Central de Video has the capacity to produce more than 25 million videocassettes a year and has about a 75% share within the region.
Technicolor is the world's largest producer and distributor of prerecorded videocassettes and has a growing business in the manufacture and distribution of compact and digital video discs.
In the past year, Technicolor has begun videocassette production in Spain, announced plans to increase DVD capacity in the United States, opened a video-manufacturing facility in Denmark, purchased the remaining 50% of its Italian joint venture, and expanded videocassette production capacity in its U.S., United Kingdom and Dutch facilities.
"Technicolor will now have the leading videocassette production plant in the world's largest Spanish-speaking country," said Lanny Raimondo, president of Technicolor's packaged media group. "This provides Technicolor ready access to Central and South America, adding to our overall market leadership position."