Technicolor Expands by Investing in Australian Firm

Technicolor in Camarillo, the world’s largest independent videocassette, CD and DVD production and distribution company, said it has expanded with a major investment in Southern Star Duplitek, one of Australia’s leading videotape and optical disc manufacturers.

As part of the agreement, Technicolor will invest about $19.5 million in Sydney-based Southern Star Duplitek, a subsidiary of Southern Star Group. Southern Star will use the money to acquire Pacific Mirror Image--another Australia-based videocassette and optical disc manufacturer with the only operational DVD manufacturing capability in Australia--for about $16.5 million.

As Southern Star Duplitek, the group will assume an operation with annual sales exceeding $60 million, with manufacturing plants in Sydney and Melbourne. Technicolor will maintain a minority interest in the combined entity, with rights to acquire a controlling majority investment in the future.

The move into Australia puts Technicolor in nine nations in addition to the United States.