Ingram Entertainment, homevideo’s largest wholesale distrib, has agreed to acquire one of the biggest remaining distributors, Major Video Concepts.
The acquisition, which was rumored last week (Daily Variety, Oct. 5), will give Ingram about 50% of the traditional video wholesale business, which represents about 40% of the overall video rental market, according to Ingram.
Ingram, which last week became one of the three wholesalers selected by Universal Studios Home Video to continue distributing its product to retailers, said the company expects the deal to close later this week.
La Vergne, Tenn.-based Ingram projects combined gross between the two distribs to reach $1.3 billion this year, with $1 billion coming from Ingram and $280 million from MVC. The company projects the combined rental market share to be 23% of all retail, including direct accounts, before last week’s U deal.
In 1999, Ingram generated $1.15 billion gross revenue, leading wholesalers. MVC, HQ’d in Indianapolis, had revs of $266 million last year.
MVC employs 260 people in 11 branch office and four distribution centers, shipping product to 7,100 accounts representing 13,000 storefronts. Ingram has more than 1,000 employees in 17 locations servicing more than 10,000 accounts.
It was not immediately known whether there will be layoffs or location closures as a result of the combination.
“Ingram Entertainment decided to acquire MVC as part of our strategic initiative to continue improvements in our profitability and performance,” David Ingram said in a statement. “Merging these two companies will create a strong distribution company going forward.”
Warner selected Ingram earlier this year as the exclusive administrator of Warner Home Video’s Rental Direct Program.
Ingram’s acquisition of MVC leaves just seven national distributors.