Distributor Consolidation: Ingram Buys VPD2 Jul, 2014 By: Erik Gruenwedel
Ingram Entertainment July 2 announced it has purchased the material assets of Video Products Distributors (VPD), the venerable home entertainment distributor based in Folsom, Calif. Terms of the acquisition were not disclosed.
The transaction was effective June 30, according to David Ingram, chairman of Nashville, Tenn.-based Ingram, who said structural changes in the packaged media marketplace precipitated the transaction.
“Acquiring the assets of VPD will enhance our financial performance by enabling us to process more units through a combined fewer locations,” Ingram said in a statement. “Those efficiencies will better position us to work with our suppliers to provide our retailers with the products they need for their businesses.”
Ingram CEO Bob Webb said VPD remains a significant contributor to the home entertainment distribution business. Specifically, Webb said Ingram is eyeing an increase in “rentailer” business — heretofore a hallmark of VPD’s 34 years in business.
Both Webb and Ingram stressed that Ingram would be working to make the switch for customers from VPD to Ingram as seamless as possible.
Regardless, the deal is bittersweet to Tim Shannahan, VPD’s chairman, CEO and principal shareholder.
“I will be eternally grateful to all the dedicated VPD personnel, both past and present, without whose contribution of time, talent, energy and loyalty we would have never enjoyed the success we experienced for so many terrific years,” Shannahan said. “I have a great deal of respect for Ingram Entertainment and its people and am confident VPD’s many customers will be in good hands. My thanks to everyone who has helped along the way.”
It wasn’t immediately clear how the deal affects VPD executives, including Brent Bowers, VP of key accounts and VP of sales; Don Rood, director of business development; Don Kosler, director of sales, and Laurie Tramel, director of distribution.
In addition, VPD, which reportedly operates warehouse facilities in Atlanta; Des Moines, Iowa; Oklahoma City, Okla.; Toledo, Ohio; and El Dorado Hills, Calif., in May entered into a deal with FlixFling offering its retail clients access to UltraViolet-compatible digital copies.