Image, which David and Malo founded in 1987, produces four or five pics annually, and distributes films on the international market. Malo, who is the founder of Malofilm, sold his shares in the company this year but remains chairman of the Montreal-based firm.
Cash and stock
Malofilm is paying David and Malo an undisclosed amount of cash and 314,983 class-B subordinate-voting shares of Malofilm with a value of approximately C$ 1 .8 million ($ 1.3 million). David, who is president of Image, will continue to run the company out of L.A.
The acquisition of Image will add roughly $ 7.3 million in revenue to Malofilm’s bottom line in the next fiscal year, per Stephen Takacsy, senior VP and chief financial officer at Malofilm.
The agreement also signals that the Malofilm execs are serious about their plans to move more heavily into the production and foreign-sales field. Until recently, the company derived the majority of its revenues from its domestic distribution activities.
On Sept. 6, Malofilm announced its acquisition of Montreal-based production outfit Filmline Intl. from owner Nicolas Clermont. Filmline generated $ 42 million worth of production last year and is expected to add between $ 15 million and $ 22 million to Malofilm’s revenues next year.
The acquisition of Image will give Malofilm much more of a presence in Hollywood and in the foreign marketplace, said Takacsy.
“It gives us access to a lot of projects, talent, scripts the whole Hollywood network that Pierre David and his staff have. And they have a foreign sales structure which will be complementary to our international distribution division ,” said Takacsy.
Image, which has frequently produced co-ventures with Allegro Films of Montreal, will continue to work with various Candian companies. The deal gives Malofilm rights to Image’s international library, which includes 74 titles.
Image is in post-production on three features: “The Nurse,” “Stranger in the House” and “Cupid.” The latter is a co-production with Live Entertainment.
Malofilm is also taking over Image’s 66.7% interest in Los Angeles-based Brainstorm Media, a new company that has just completed principal photography on “Kidcop” and is in pre-production on “Little Men.”