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Deluxe Buys Disctronics

27 Jun, 2003 By: Hive News

Deluxe today announced that it has acquired the European operations of Disctronics, one of the largest independent CD and DVD replicators in Europe.

Deluxe already has facilities in the United Kingdom, France, Spain, Germany, The Netherlands, Portugal, Sweden and Italy, and will now add capacity to replicate 1.5 million additional optical discs per day through the Disctronics purchase.

Deluxe provides DVD and video manufacturing and distribution services for studios including 20th Century Fox International, Paramount , Columbia TriStar Home Entertainment and Universal Pictures International. The acquired facilities will support these customers while also continuing to replicate for major customers including Universal Music, BMG and Warner Music.

“Deluxe was looking to expand its disc manufacturing capabilities in Europe and Disctronics clearly presented itself to be the right company at the right time,” said Peter Pacitti, president and CEO of Deluxe Media Services in a statement. “Disctronics is recognized as a quality service provider in the European optical disc arena with a proven history of profitability and reliable service.The acquisition gives Deluxe important resources and capabilities necessary to meet the needs of new and existing customers. The deal also positions Deluxe as a major European supplier for both CD and DVD services. This provides a significant base from which to expand our European disc manufacturing capabilities in support of the evolving formats under development by the entertainment industry.”

Deluxe will assume responsibility for four Disctronics facilities. In the U.K., audio CDs are produced at the Blackburn facility in the North of England, a facility which was acquired from Universal Music in June 2002, and at the Southwater facility near Crawley in Sussex. Current customers including Universal Music, BMG and Warner Music will all transfer to Deluxe as part of the acquisition. The Southwater facility also manufactures DVDs. There are also two facilities in continental Europe, one near Toulouse, France, and the other in Milan, Italy. These two smaller facilities produce audio CDs and CD-ROMs for computer games customers and internet service providers including AOL, Electronic Arts and France Telecom.

All four facilities to be acquired are ISO 9001 certified with the capability to produce DVD Video, DVD-ROM, CD-ROM and CD Audio formats. The 800 employees that comprise the work force at Disctronics are being offered positions with Deluxe. Disctronics Texas does not form part of this transaction.

Deluxe is a wholly owned subsidiary of the Rank Group.

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