Film-processing giant Technicolor is expanding its presence in the large-format film arena, acquiring Consolidated Film Industries for $48 million in cash, the company said Monday.
CFI is a Hollywood-based film processor specializing in large-format pics for Imax and other specialized film services. Its acquisition makes Deluxe Labs the only other remaining independent film lab.
Technicolor said the combination of its core business in 35 mm film processing with CFI’s wide-format film processing creates significant market opportunities. Combined, the companies would be able to offer film-processing services from 16 mm to 70 mm in the U.S. and Europe.
The combined entities immediately will benefit from shared technology, engineering and laboratory resources, resulting in savings and revenue-growth opportunities.
It also will make Technicolor more attractive as parent Carlton Communications plans to sell the division as part of its proposed merger with United News and Media.
Technicolor provides film-processing services to the major studios. It is also the world’s largest producer of homevids and DVDs, with plants on the East and West Coasts, as well as in Canada, Mexico and Europe.
Among CFI’s clients are Imax and studios including Sony, Universal, MGM and Paramount, as well as indies USA Films and Lakeshore.
“Combining Technicolor and CFI, with its bigscreen expertise, is another great step forward,” Technicolor CEO Lanny Raimondo said. “We will provide better service to more customers in a rapidly growing market.”
“We are pleased to join the Technicolor family and look forward to broadening the services provided to our customers around the world,” CFI prexy Bob Beitcher said.
Technicolor was founded in 1915 by Herbert T. Kalmus. CFI has been in business for 75 years.