Deluxe Entertainment buys 3-D conversion company
Deluxe Entertainment Services Group Inc., the post-production house controlled by billionaire Ronald Perelman, continues to bulk up.
The Hollywood-based company said Wednesday it had acquired StereoD, a Burbank business that specializes in the 3-D conversion of such movies as "Thor," "The Green Hornet" and the upcoming "Captain America" from Marvel Studios.
"StereoD has grown rapidly in a year and a half, not only because of its proprietary VDX technology but its proven ability to service its clients," said Cyril Drabinsky, president and chief executive of Deluxe. "They are a perfect fit for Deluxe, both for StereoD's traditional theatrical content business and in new areas such as 3D Blu-ray, 3D TV channels, 3D commercials and 3D streaming content.”
The deal is the latest sign of consolidation in Hollywood's post-production business. In November, Deluxe, in a move to offer a wider range of services, announced a deal to acquire the bulk of Ascent Media Group, the Santa Monica-based post-production company controlled by cable pioneer John Malone, for $68 million.
Hollywood's rush to convert dozens of films to 3-D has been a boon to companies such as StereoD, which employs 250 people. The company's current president, William Sherak, will continue to run the business and will report to Drabinsky.
Deluxe is the world's largest processor of film and Blu-ray discs and also provides a range of digital media services to the film and TV industries. It has post-production facilities in North America, Europe and Australia.
Photo: Ronald Perelman. Credit: Kathy Willens / Associated Press
-- Richard Verrier