Acquisition of Technicolor Will Boost Thomson Profit

Thomson Multimedia says its $2.1-billion acquisition of Carlton Communications’ Technicolor unit in Camarillo will boost per-share earnings of the world’s fourth-largest consumer electronics maker by 19% in 2001.

The cash and share acquisition, which was completed this month, will also create $25 million in cost savings, said Thierry Breton, Thomson Multimedia’s chief executive.

The Paris-based company, which makes RCA televisions, agreed to buy Technicolor last month to expand its services to movie studios and television broadcasters. That acquisition followed the purchase of rival Royal Philips Electronics’ professional broadcasting business for an undisclosed price.

Technicolor, founded in 1915, is the world’s biggest maker of digital video disks and the largest processor of motion picture films. It had revenue of $1.6 billion and operating profit of $247 million in its most recent fiscal year, which ended Sept. 30. It employs 1,400 people.

Thomson paid Carlton $750 million in cash and will pay another $600 million over the next four years. In addition, Carlton gets 15.5 million new Thomson Multimedia shares worth approximately $731 million.