MAJOR TECHNICOLOR EXPANSION IN CANADA

TECHNICOLOR, the wholly owned subsidiary of UK-based Carlton Communications Plc, have announced that they are offering to buy Montreal-based Groupe Covitec for £27 million.
Gropue Covitec is Quebec’s largest supplier of integrated technical services for the film, television and advertising industries. Their major clients include Warner Brothers and Disney.
Walter Schonfeld, President of Technicolor’s Worldwide Film Group, said: “Technicolor is expanding its film processing operations right across North America. Covitec is a world-class organisation with a leading position in Canada. This acquisition will enable Technicolor to provide a better service to more customers in the North American market generally.”
Claude V. Gagnon, President and Chief Executive Officer of Groupe Covitec, said: “This partnership positions Covitec to continue maintaining its leadership in the local market and compete effectively in the worldwide marketplace. We are all looking forward to joining the Technicolor family and continuing to expand our business operations after the acquisition.”
Covitec employ over 370 people and have film laboratory, post-production and production support operations in Montreal, Ottawa and Quebec City.
Full acceptance of the offer would result in consideration of £27 million payable in cash.